Getting a car loan can be one of the best ways of rebuilding your credit rating after going through a bankruptcy. Getting a car loan after bankruptcy is possible and here are the tips and tricks that can help improve your chances of being approved for a car loan or financing.
Take a Review of Your Credit Report
Before kickstarting the process of applying for car financing, it is important that you make a complete review of your credit report to make sure things are in order before going ahead with applying for a car loan. Common mistakes that people make is leaving open an acount that should be closed, things like this actually impact negatively on your credit score and should be taken ccare of before proceeding wiith the loan application.
Plan Your Car Purchase
Before going ahead to get a car loan it is important that you analyse your financial situation to see how much you can afford to pay monthly and still meet your other financial obligations. This will help you decide on what loan package to apply for, you dont want to make a purchase only to find out later that you cannot afford to keep up with your monthly payments.
Use A Car Loan Lender
You can use the services of a car loan lender to find a loan that is suitable for you. Car loan lenders specialize in helping people find loans, and these people work in partnership with financing houses to provide loans with all kind of credit risks, including bankruptcies. You can also engage the services of online car loan dealers who will help you through the application process and then mail your check to you when you are approved.
Explain Your Situation
In filling out a car loan application, you will be asked if you have ever had to declare a bankruptcy, this is your chance to be upfront with them, you will also be asked about the reasons that led to your declaration of bankruptcy. You wil have to expain to them why you decared bankruptcy and the steps you have taken since then to repair and improve your credit situation.
Once you have been approved for a car loan, you should not just stop there, continue to pay your bills promptly without defaulting and be on the lookout for future refinancing. If you consistently make efforts to build your credit rating, then in a few years you can be eligible for even lower rates for refinancing.