Needing a newer car is one of the most prevalent situations for people who have just gone through a Chapter 7 or 13 bankruptcies. This is especially challenging because most creditors base their loan approvals on the credit worthiness of the applicants. If you are in this particular situation, you should not fret because there are ways for you to get a loan within affordable terms.
A very important fact that you need to keep in mind is that not all creditors follow identical policies as regards granting loans to people. While prime lenders such as multinational banks are rigid when it comes to granting loans to individuals, other types of creditors are more accommodating especially to those who just suffered a bankruptcy.
What you need to remember after going through a Chapter 7 or 13 bankruptcy discharge and/or dismissal is that most creditors would look at your credit score which is why you can expect to get rejected most of time.
However, if you find the right lender through one of the online credit services, you will have a better shot at getting approved for a loan. All you need is to present proof of your capacity to pay back the money through your monthly income. Some credit programs even allow no down payment arrangements so you will be able to keep all of your money intact for the time being.
Getting good rates for a loan is not impossible, that is, if you know where and how to look for the right creditors. Seeking assistance from reputable credit services online would make your loan application pull through a lot faster so it is by far the best option that must be taken.
Bankruptcy happens to be one of the toughest financial hurdles that people encounter and if you just went through it, you are most likely aware of the fact that you will have a hard time to get approved for an auto loan when you need one. If you have had a dismissal, it will be more difficult regardless if it was a chapter 7 or 13. On the other hand, a discharge will not be as tough to work with.
Your choice as to the type of lender you will do business with greatly affects your chances of getting approved especially after a financial setback like bankruptcy. You can expect most, if not all prime lenders to turn you down due to your current credit worthiness. Generally, you would be advised to make some progress in rebuilding your credit before you can be considered for an approval of any type of loan.
In order to get ahead in re-establishing your credit, you need to consider applying for an auto loan with sub-prime lenders. These creditors are used to dealing with people who have just suffered through bankruptcy and more importantly, they are more willing to work with you. This is a sector of the financial market that generally helps people out of their financial woes by granting them credit without asking for too many requirements.
Going to the right type of creditors would make it easier for you to get a loan and het out of bankruptcy. What only matters with subprime lenders is how much money you are actually earning at the moment which would determine how much monthly payments you can make.
A very important caveat that you have to observe though is to only deal with reputable subprime lenders in order to get you out of the financial slump you are in. Avoid predatory lending, such as buy here pay here dealers.
