Top Three Tips to Help You Get a Bankruptcy Car Loan after Filing
One of the common misconceptions about bankruptcy and specifically about how to get a bankruptcy car loan after your bankruptcy that we have heard is that getting such a car loan is next to impossible. However, just the opposite is true. In fact, your lawyer or trustee has probably already recommended to you that you start building up credit. One of the best ways that you can do this is to obtain a car loan. Here are three tips to help you get a bankruptcy car loan after filing.
Expect to Pay More
Getting a car loan after filing for bankruptcy is not impossible, but you will want to manage your expectations a little bit. For example, you will likely pay a little more for your vehicle. Any lender is going to see your bankruptcy has a bit more of a risk factor, and so the cost of your vehicle and the cost of the auto loan is going to be a little bit higher than if you were to come in with a perfect score and a history of on-time payments.
Expect a Higher Rate
One other thing that you need to be realistic about when you are buying a car after a bankruptcy filing is that the loan terms that you get are not going to be as favorable. As we have mentioned, you will likely have to pay more for your auto loan due to the fact that you are a riskier candidate for the lender to take on.
Use our Calculator to Budget
Finally, you can get a good idea as to what your budget might be by using our calculator tool. You must be realistic. Start with 8% and then move up to 12% and try even a few higher numbers on the capital cost you think you need to pay for the vehicle you want.
Given our strong relationship with our lenders or even our own In-House lending we work very hard to get you the lowest possible interest rate. Then as you begin the re-establish your credit we look to refinance your loan as soon as possible at a lower rate.