Posted on
July 6, 2009
at
2:10 am
How possible is it to buy a car after bankruptcy?
Posted on
July 6, 2009
at
2:17 am
It is possible but it depends on how you can improve your credit report and if you are able to find a reliable lender (do watch out for scams). Most bankers and lenders, of course, after bankruptcy, would not want to work with you, but do look for lenders that offer loans (specifically) to people with bad credit. Check your local car dealership and also online shops.
Posted on
July 6, 2009
at
2:20 am
Speaking of improving your credit report, obtain a copy of yours, and look
for any mistakes or listings in it that you can dispute. You have the right to have the errors corrected via your the Fair Credit Reporting Act.
Posted on
July 6, 2009
at
2:24 am
I agree with what they've said, and to add to them, try to open a new bank account if your old one was closed as a result of your bankruptcy--because you will need a checking account to obtain a loan. You may be looking at 6 months before your new bank grants you a loan.
Posted on
July 6, 2009
at
2:32 am
You also have to consider the fact that different lenders for bankruptcy auto loans may have different requirements, ex: the bankruptcy must be discharged, no repossessions record withing the last year, minimum monthly salary based on the credit score, etc.When choosing a lender, and as damon and graham said, beware of scams, and check with the Better Business Bureau for the lender's legitimacy and creditibility.
Posted on
July 6, 2009
at
2:34 am
thanks a lot for the replies! and what would you consider a good loan?
Posted on
July 6, 2009
at
2:52 am
Consumers who have undergone bankruptcy should expect to be offered/charged a higher interest rate. However you should watch out for excessively high interest rate, prepayment penalties, and some other outrageous other fees. Make sure that the terms of the loan offered you meet your paying capabilities. So look for a loan that has a reasonable interest rate. If you are offered a large loan it means that its interest is also large. You might not want to go for that as it will only stretch your repayment period.
Posted on
July 6, 2009
at
3:01 am
Also..you shouldn't be paying for a car that would die or malfunction before you are through paying it off..go for a reasonably priced car. Also do shop around and compare interest rates.
Posted on
July 6, 2009
at
3:08 am
Are you back in the employed ranks? If not yet, I think that getting a job should be first in your priorities, before you even think about applying for a car loan--because you'd soon find out that lenders are almost always willing to take a chance on consumers with a fixed source of income.
ck Rep Points:
Posted on
July 6, 2009
at
3:26 am
And if you're really having a tough time obtaining a loan, try to ask a relative or friend to cosign your car loan. A guarantor can -not only help persuade a lender to grant you a loan..it'd also get you a slightly better rate.
