Getting a Car Loan After Bankruptcy: Can It Be Done?

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Filing for bankruptcy can be a very unnerving time in your life. If you are concerned about the possibility of ever having good credit again, especially to purchase a car, try not to be too worried. It is certainly possible to get a car loan after you have filed for bankruptcy. It will take some work on your part, but it can be done. The following is some information about getting a car loan with a sub prime loan after bankruptcy:

Get a Sub Prime Lender

One of the biggest aspects of credit repair is finding a lender who is willing to take a chance on you. Before any lender will do this, you will need to demonstrate that you can pay your monthly bills on time each month for a period of time. However, it still may be difficult to get financed through a car dealership after bankruptcy. You may want to attempt obtaining a loan with a sub prime lender. A sub prime lender is one that specializes in helping those with bad credit get financing.

While you can likely get a car loan with a sub prime lender, keep in mind that the percentage rates are going to be more expensive. However, if you are trying to rebuild credit and purchase a car, you are going to have to pay the price to do so.

Where to Find a Lender

Once you have decided to use a sub prime lender, the best way to find one is by searching online. You will be able to locate a variety of lenders that advertise their rates. Once you have found the best rate, you can begin the application process. This will serve as a pre-approved loan that you will then take to the dealership when you are ready to shop for a car.

What If You Cannot Get a Sub Prime Loan?

If your credit score is really low, as in less than 500, it may be very hard to even get a sub prime loan. The only financing option you may have at this point, other than slowly rebuilding your credit with responsible bill paying, is to apply for a pre-paid secured credit card. This type of card is secured by a bank and requires you to deposit money into the account. Once you begin paying regularly on this type of card, your credit will begin to inch up enough that you will be able to get a sub prime loan.

Getting a car after a bankruptcy can be done, although you will likely be paying more than those in better credit situations. However, it can be beneficial to your financial health in the long run. If you have more questions about getting a car loan after bankruptcy, talk to a lender and a bankruptcy lawyer like David S. Riehl, Attorney At Law for more information.