Get a Car Loan 60 Seconds After Your Bankruptcy Is Discharged
Bankruptcy should be a last resort, but sometimes there are no other alternatives. Bankruptcy takes a huge toll on credit scores. So, how do you get an auto loan after discharging a bankruptcy?
Car Loans from Traditional Lenders
Traditional brick and mortar financial institutions such as banks and credit unions have tightened their qualifications for just about any type of credit financial instruments since the housing loan debacle of the last decade. Of course, having just discharged a bankruptcy, these lenders are not going to vigorously welcome you with a bankruptcy car loan.
But, if you have been a client and held accounts with them for some good period of time, they may be willing to cut you some slack. If you have retirement or investment accounts with them, all the better. Also, these institutions offer the lowest interest rates of all your other options.
Pay Here Car Dealerships
Depending on your attitude toward car shopping and your financial situation, this could be either a good or bad approach to getting a bankruptcy car loan. With loans offered by the dealership, you are locked into purchasing a car off that particular lot. You will not have to go loan shopping; it will be a one step venture; you can get a car, a loan, and often insurance with one visit to one lot. And , if you like, these dealerships are often amenable to setting up weekly or pay day payment schedules.
The most important thing to consider is that these loans will probably carry the highest interest rates of all your options. And it is easy to get swept into a rather costly deal with the dealer dangling keys in your face with one hand, and in the other hand holding a perhaps usurious bankruptcy car loan contract and a pen. Be careful and read the fine print.
Internet Car Loan Lenders
This is probably the best way to land a bankruptcy car loan. Punch your browser with the key phrase, car loan. You will be immediately rewarded with scores of lenders who may be willing to offer you a bankruptcy car loan. You will also find brokers who will take some general information about your financial needs and goals and come up with a list of lenders who would be most likely to work with you and for you. The nice thing about this is the negotiating power it gives you when you walk onto a car lot.
You are not obliged to only pick certain cars, you can shop at any dealership you choose. Interest rates will be somewhat higher than those offered by a traditional lender. But so many folks have taken hits on their credit reports during these troubled financial times. And traditional lenders are not lending easily. So, many private lending companies have entered the hot market and you will be able to pick and choose to find the best interest rates and most comfortable repayment terms.
Bankruptcy Car Loans Can Even Help
No matter which way you choose to get your bankruptcy car loan, if you honor the loan contract and make your payments in a timely manner, you will be giving your credit ratings a big boost. Just be careful, do not let anybody back you into a corner so that you end up signing something you will regret until the loan is paid off. You have heard it so many times because it is so true – read the fine print before you sign anything.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
Devora Witts is a certified loan consultant who helps people get approved for Loans for People with Bad Credit and Bad Credit Mortgage Loans. To get aid with your financial situation you can visit her at http://www.badcreditloanservices.com