12 August 2016
Getting a Bad Credit Car Loan After Bankruptcy
If you have been through bankruptcy, one of the fundamental concerns you will certainly have is how to reestablish your credit. The reality is, bankruptcy has such a massive impact on your credit standing and most lenders may view you as a risky borrower even years after you have been discharged. This has squashed the hopes of many people considering a bad credit car loan. However, the good news is, you can still qualify for car financing even if you have been through a bankruptcy at Rent 2 Own Cars.
Thanks to the aggressiveness of lenders, bad credit customers in the subprime market can easily secure a car loan contrary to how it was five years ago when the global economy was shaking off the dust of the financial crisis from its feet. To make the approval process easier and straightforward for you, below are some tips you may want to consider.
Interest Rates and Down Payments
The problem with bad credit financing is not much in getting the loan, but rather the pricing of such credit as well as the down payment required. In order to arrive at good credit deals, you can sample a number of lenders particularly on the terms of their loans in a bid to single out those that can lend you at a much lower interest rate and down payment. You can also reduce your interest rate significantly down the road if you show a good repayment pattern.
Lenders will require a certificate of discharge for customers who are emerging from bankruptcy. This doesn’t mean that the bankruptcy is over, but rather the court has discharged you and as such in a position to apply for credit. Lenders are after that assurance. There will also be limits on the amount you can be approved for.
Enlisting the Help of Co-signers
One of the closest partners you should maintain after a bankruptcy is a co-signer. This simply means somebody who can stand with you and sign alongside you when negotiating for car financing. This could be a family member or a trusted friend. The beauty with a co-signer is that he or she helps in lowering your interest rate because both of your credit standings will be considered at the time of loan approval.
The Time Aspect on Bankruptcy
Lenders are not keen on fresh bankruptcy filings and discharges. However, with time, the impact of bankruptcy goes down significantly and the skepticism fades away. This means any effort to keep your credit in shape after bankruptcy can give you a real boost while applying for a bad credit car loan. Your recent behavior has more weight to financiers than your past when evaluating your credit worthiness.
In addition to the above, ensure you work with a lender who understands your situation and always do your homework with regards to the car options available and the loan products you can qualify for.
Rent 2 Own Cars is Australia’s number one bad credit loan company for vehicle purchases, they look at your future not your past.