Auto Loans Post-Bankruptcy: Tips for Getting a Loan
Having a bankruptcy on your credit report, it is easy to assume that you will never be able to get a loan for a new car. However, there are options for post-bankruptcy auto loans online.
Finding a lender to work with you soon after your bankruptcy is tough. Though there are many who claim to specialize in post-bankruptcy loans, the fine print found in many of these contracts may leave you in a situation far worse than the one you were in before you filed for bankruptcy. That is why it is important to be armed with knowledge when you are looking for a post-bankruptcy auto loan.
Be Honest with Yourself and Your Lenders
Though filing for bankruptcy is by no means the proudest move of your life, it is a fact for you from here on out. Therefore, it is important that you come to terms with what your bankruptcy means and the fact that there is no way to hide it from any lender you contact.
At the outset of your relationship it is wise to confess to the bankruptcy and do your best to explain the circumstances which led to it. Generally, you will find that writing a letter to the lender which explains which debts you had expunged and why will help to clear the air and allow you to move forward.
Over time, responsible borrowing and repayment will slowly improve your credit score and, though the bankruptcy will never go off of your credit report, as long as you are honest about it, it will count less and less against you.
Finding the Right Loan and Lender
These days, the smartest place to start your search for a post-bankruptcy loan is online. With the economy in the delicate shape that it is in, there are many people in need of loans which caused many lenders to extend their business to the internet. By using the tools and the variety of options afforded to you through the World Wide Web, you will be able to compare several lenders from the comfort of your own home which will increase the chances of you getting a better deal.
Use Caution and Remember the Mistakes of Your Past
Though you will find many lenders online who will specialize in post-bankruptcy loans, that does not mean that they are all going to bend over backwards to give you a good deal. Though lending to someone with a bankruptcy on file is a risk for the lender, it can also pay off since the interest rates charged on post-bankruptcy loans are so high. In general, any offer that you receive will be a good deal higher than those you see advertised and extended to those with better credit scores.
However, this does not mean that you are doomed to being swindled. Remember that you deserve to be treated with respect and dignity. Outrageous interest rates are not acceptable for anyone, regardless of credit history. Learn from your past mistakes and be sure to review the fine print of any lending offer extended to you. Also, be sure that you choose a car or truck that is affordable given your budget and takes into account the higher interest rate that you will be required to pay.
There Is Hope
If you have a bankruptcy on your credit record it is easy to assume that you have no hope of ever getting an auto loan. This is simply not the case though. There are many online lenders who specialize in post-bankruptcy loans who can help you get the car you need at an affordable interest rate.
Article Tags: Post-bankruptcy Loans
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ABOUT THE AUTHOR
Joycelyn Crawford is the author of this article. For more information about Easy Loans for Bad Credit and Easy Home Equity Loan please visit her site http://www.easyloanforyou.com