Bankruptcy Advice
It can be difficult to build your credit back up following a setback like this, TheCarCreditExperts can make it possible. A bankruptcy car loan is a good way to help your credit recover once you’ve received a discharge from a Chapter 7 or Chapter 13. The process of getting a car loan following a discharged bankruptcy is fairly simple.
Like with any other bad credit auto financing, you need to meet the lender’s requirements to qualify. Besides meeting the income, employment, and residency requirements most lenders look for, there are a few tips to keep in mind:
- Check your credit - Make sure you check that the discharge shows up on your credit reports, check for overall accuracy, and view your credit score to see where you stand before visiting a dealership.
- Amount matters - The less money you borrow, the easier it should be for you to get approved. A good way to keep costs low is to finance a used vehicle. Keep in mind that you'll need a reliable vehicle, not just an affordable one.
- Prepare a down payment - The bigger your down payment, the less you have to borrow. Subprime lenders typically ask for $1,000 down or 10 percent of the vehicle's selling price, whichever is less.
- Cosigners can be a big help - In fact, lenders sometimes require bad credit borrowers to have one. But, before you ask a friend or family member to put their credit on the line, be sure you both know what this means.
To be sure you don’t get turned away, make sure you have your discharge paperwork with you when you contact us. If you’re in an open bankruptcy and need an auto loan, it’s possible to get one, but the process is very different from getting a car loan after discharge. Depending on whether you’re in a Chapter 7 or a Chapter 13, you’ll have to follow a different set of rules. Either way, TheCarCreditExperts are here to help.