If you have recently filed for bankruptcy and your car has decided to stop operating, this article may be of assistance. Here are three strategies that can assist you in finding a car after paying off excessive debt.
For Ten Years, Bankruptcy Will Appear on Your Credit Report.
When this is the case, it is reassuring to know that you will not be unable to obtain credit for the next ten years. In fact, auto loans after bankruptcy provide the greatest opportunity to obtain financing and begin reestablishing credit.
When it comes to giving you a loan for a quality used vehicle, there are subprime lenders available who are a bit more receptive and understanding than conventional lenders. Chances are you will have to pay a bit more in interest, but if you have the income, a car loan is possible.
With this, you can begin the process of improving your FICO score by making timely monthly loan payments. Each payment will be noted on your credit report, and future creditors will be able to see the responsible behavior you have demonstrated with your auto loan.
Consider Refinancing After Making Current Payments for One Year.
After a year of being responsible with your auto loan payments, you may be eligible for a more conventional loan. Refinancing may allow you to obtain a higher interest rate and terms, allowing you to reduce your monthly payments.
Some individuals do not consider refinancing for improved terms. You can still apply for a new loan, even if your original loan has a term of three or four years. It is reassuring to know that after one year of on-time auto loan payments, you have access to this option. Please remember to consider refinancing after a year to see if you can lower your monthly payment.
Consider a Car Consultant for Car Loans After Bankruptcy
Some automobile consultants offer special financing for clients with imperfect credit. After filing for bankruptcy, an auto consultant will do their utmost to find you special financing. They are less concerned with simply completing a sale for the day than they are with working with you and your situation.
In addition, using a consultant could provide you with a wider selection of high-quality pre-owned vehicles to choose from for your new loan. These establishments typically utilize a variety of resources to locate your vehicle.
With quality service and a car loan that makes sense for you and your situation, an auto broker may be the best option for obtaining a new car loan.
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