Getting a Car Loan After Bankruptcy
If you have just filed bankruptcy and want to get a car loan, your chances of getting one are going to be very slim. That also goes for the person who filed bankruptcy months ago and now is in need of a car loan. You are going to have to have a certain credit score to even be considered for a car loan.
Getting any kind of loan after filing for bankruptcy can be very hard. Most of the car loan lenders are going to require that you have at least a 550 credit score but most prefer a credit score of 700 and up. The key to getting that credit score improved after bankruptcy is paying your bills on time and rebuilding your credit. Rebuilding your credit is the key to any kind of life after bankruptcy. Bankruptcy has many negative effects on a person’s finances and their life as well.
Steps For a Car Loan After Bankruptcy
- You are going to need to take out a couple of credit items, it does not matter if they are secured or not. Paying them on time for a couple of months is going to be a good indicator for most lenders that you are trying to get back on track. Bad credit is inevitable when it comes to filing for bankruptcy. If you want to get a good rate on the loan, chances are you probably will not.
- Your loan rates, fees and interest are going to almost sky high. The longer you wait after filing for bankruptcy and showing creditors that you are doing your best with paying your bills you have accumulated, then the better rate and terms you will receive as well as your credit score going back up.
Approach the car loan after bankruptcy like someone who is getting a car loan with no credit. It is very important to remember that it takes quite a while to get your credit back into good standing after filing for bankruptcy. When it comes to wanting to get a car loan, it would be in your best interest to shop around with a couple of lenders who deal with people that have filed for bankruptcy. That way you are sure to get the best rate and loan terms that you can find.
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