Can you still qualifying for poor credit auto loans following a personal bankruptcy. In this video, Auto Credit Express covers how you can apply for an auto loan after completing a bankruptcy. For more helpful tips and advice on bad credit auto loans, please visit www.autocreditexpressvideo.com for more information.
The common perception is that it is virtually impossible to obtain a good car loan after one has filed for bankruptcy. While it is a bit more difficult to secure a proper car loan after you're coming off a bankruptcy, it is by no means impossible as long as you can do the right things that can improve your chances of getting approved by lenders.
There are two things that work to your disadvantage after you've been through a bankruptcy. For one you have the actual bankruptcy mark that shows up on you credit report. This mark will be there from anywhere from seven, to ten years depending on the kind of bankruptcy you filed for. Most lenders will not consider an application for a car loan until at least two years have past since the bankruptcy proceedings were finished. There isn't much you can do about this besides providing your lender with a thorough explanation on why you filed for bankruptcy, and how things have changed for you.
Next, you are at a disadvantage because your credit is probably shot.
The good thing is that you can do a number of things to improve you credit over time, and if you know exactly what you're doing, you can have it back up to an acceptable level within one to two years. The best thing you can do is obtain a few small credit accounts and make the payments every month meticulously. This will show that you are capable of handling debt, and it will also slowly increase your score over time.Once you have your credit back online, it is now time to find a lender that is willing to work with you. Fundamentally speaking, the better you have improved your situation since your bankruptcy the more reputable a lender you will be able to apply to.
If you still feel that you haven't made enough significant changes to your credit and overall application, you can try applying to what are called "sub-prime" lenders, as these lenders make all sorts of loans to people with extenuating circumstances, and bad credit. If you are still having difficulty, you can try and see if the dealership you bought your car at offers financing because dealerships typically will approve almost anyone that has at least a steady income and employment history. Do expect to pay a higher interest rate if you go these routes, as there is some compensation for these kinds of lenders' leniency. Related Getting a Car Loan After Bankruptcy Topics
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