Auto Loan after Bankruptcy
You can obtain auto loan after bankruptcy. It is a good way to rebuild your credit. However, it is best to wait for a year or two before applying for auto loan after bankruptcy.
Bankruptcy does not mean end of the world for you
Sure, coming out of bankruptcy is a difficult task. Nevertheless, you have several creditors waiting to lend you money. However, they view as a high-risk debtor and hence charge very high fees for their credit. The same explanation applies to auto loan after bankruptcy whereby lender keeps higher interest margin to set off losses if you default on your payments.
Therefore, best recourse before applying for auto loan after bankruptcy is to look into other avenues to build your credit. Most common among them is to obtain a secured credit card. You should pay credit card balances regularly to receive waiver of fees. Regular monthly payments reflect positively on your credit report and soon your bankruptcy and bad credit become outdated. You can also try applying for two or more lines of credit.
Approach sub prime lender
If you need auto loan after bankruptcy, it is best to approach sub prime lender for better financial package. Sub prime lenders specialize in loans to people with bad credit. Hence, they offer you auto loans albeit at lower rates than traditional lenders who charge higher interest rates for bankrupt borrowers. You can take such loan initially, pay regularly, and improve your credit. Thereafter, apply for refinancing of your auto loan to benefit from lower interest rates.
Take help of the Internet – compare auto loan rates
Getting a good sub prime lender is not easy. You can benefit from applying to various online auto lenders to receive different quotes for your auto loan after bankruptcy. You need to give information about your employment, necessary loan amount, your income, etc. Thereafter, you can take loan from sub prime lender offering best interest rate. Most often, you can further negotiate with such lenders to receive best and fastest quote for your low rate auto loan.
online auto loan quotes.