Bankruptcy can affect anyone. A struggle that can come with bankruptcy is trying to convince loaners to lend you any money. No one wants to deal with bankruptcy. People ten to have trouble getting a car loan after filing. However, there are things you can do to improve your odds of receiving a car loan after filing bankruptcy.
Check, and Double-Check, Your Credit Report
There are three big credit agencies that allow you to check your credit report every 12 months. After going through bankruptcy, you are going to want to do this often. When it comes to determining if you qualify for a loan, your credit score plays a significant role. Another reason to check your score is due to errors. If you have any errors on your report, they will impact your score negatively. Be sure to become familiar with your credit score.
Bankruptcy And Getting A Car Loan
Do Your Homework
Shop around to see what options you have when it comes to getting a car loan. Don’t go with the first lot that takes a look at your situation. After filing for bankruptcy, more times than likely you will have to pay a higher annual percentage rate on your car loan. The reason lenders give lower rates to those with strong credit is because they see them as more likely to repay their loan fully. Though you may receive a higher rate than expected, you don’t have to settle.
Don’t Try to Be Fancy
Try to remain within your budget when it comes to looking at cars. If you fail to repay on your loan, then that will lead to repossession and may dig you in a hole further. Also, lenders tend to be skeptical to those who approach them with a loan for a car that is expensive.
Make Timely Payments
Times can become hard after filing for bankruptcy. Though you may feel alone, remember, there are hundreds of thousands of people in your same situation. Remain consistent with your payments until your debts are fully paid off. Making all of your payments on time will boost your credit in due time.