Can you still get a car even if you’ve declared bankruptcy? Technically, the answer is yes. Filing for bankruptcy doesn’t stop you from being able to take out loan so you can get a car. Do note, though, that it will not be easy, since your credit is not in good standing.
Still, trying to take out a bankruptcy car loan will make one worry about getting rejected. However, taking a car loan is actually a step towards rebuilding your credit history. Here are some helpful tips you can consider to increase the likelihood your loan application will be approved.
Prepare for Down Payment
Keep in mind that you’re entering into this with a bankruptcy on your record. Expect the lenders to be a bit more cautious when it comes to approving loans from individuals like yourself.
One way to reassure lenders about your capacity to pay is to be ready with a significant cash amount for the car’s down payment. The bigger the amount you put down, the smaller the amount you’ll have to pay for the rest of the installments. In effect, this also means requiring a smaller loan amount which means lower interest expense
Try to come up with at least 20% of the price for a relatively new pre-loved, or even brand new car. If you were to buy a much older and relatively cheaper model, you can set aside some 10% for the down payment.
Show Good Faith in Credit History
Essentially, this is the part where you convince the lender that you can still meet payment dues despite your money troubles. You can prove this by showing past billing statements that reflect timely payment. It can be credit card bills, utilities bills for the house, or even mortgage payments. Your credit card bill is actually a good indication of financial responsibility because this shows that you are capable of staying on top your financial obligations on a monthly basis.
Last but not least, seek professional help from car loan agencies, such as Dick’s Auto Loans. Finding a credible and trustworthy agency to help you should make things a whole lot easier. They can advise you about requirements and processes that you’ll have to go through should you push through with your loan.
Falling into bankruptcy should not hinder you from getting your life back on track and rebuilding your credit history for good. It’s not going to be easy and it’s not going to happen overnight, but you have to start somewhere and working with car loan agencies should be a good place to start.
How to Get a Car Loan After Bankruptcy. Credit.com.
5 Options for a Car Loan in Bankruptcy. Bankrate.com