Auto_Loans_After_Bankruptcy_-_Getting_Approved_With_Bad_Credit

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Auto Loans After Bankruptcy - Getting Approved With Bad Credit


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359


Summary:
Bouncing back after a recent bankruptcy is challenging, but possible. To begin with, you will need to rebuild
credit, which involves opening new accounts. If you need a new vehicle, financing a car following a
bankruptcy may be a smart move. Auto loans are easy to qualify for. Thus, you can get approved with
horrible credit.


How to Avoid High Interest Rates?


If your bankruptcy was recently discharged, high interest rates may be unavoidable. Yet, there are ways to
purcha...



Keywords:
auto loan, car loan, bankruptcy, bad credit



Article Body:
Bouncing back after a recent bankruptcy is challenging, but possible. To begin with, you will need to rebuild
credit, which involves opening new accounts. If you need a new vehicle, financing a car following a
bankruptcy may be a smart move. Auto loans are easy to qualify for. Thus, you can get approved with
horrible credit.


How to Avoid High Interest Rates?


If your bankruptcy was recently discharged, high interest rates may be unavoidable. Yet, there are ways to
purchase a new car without paying several percentage points above the current average. Sadly, there are
some people paying interest rates 18% or more.


To avoid high fees, postpone financing a new or used vehicle. Instead, attempt to get a secured credit card.
Make timely payment for about a year. In time, your credit score will improve, making it possible to obtain
an auto loan with a rate of 9 or 10 percent.


Choose a Used Vehicle to Finance


If you are hoping to improve credit by financing a vehicle, opt to finance a small amount. Thus, even with a
high interest rate, you can receive affordable payments. Another tactic involves taking charge of the car
buying process. Instead of allowing the dealership to determine monthly payments and loan term, inform the
dealership of how much you are willing to pay. Your ideal monthly payment should include finance fees.


Use a Subprime Auto Loan Lender


After a bankruptcy, subprime lenders are helpful with helping people secure auto loan financing. Some
lenders are shady. On the other hand, a large number of lenders understand your circumstances and attempt
to offer affordable solutions. If using an auto loan broker, you have the opportunity to receive various quotes
from different subprime lenders. This is ideal for making comparisons and choosing the best loan.


Apply for Loan with a Co-signer


If you are hoping to obtain an auto loan with a low interest rate, it may help to apply for the loan using a co-
signer. Co-signers or co-borrowers become responsible for the loan if you are unable to pay. If your co-
signer has exceptional credit, you may qualify for a low interest rate on your auto loan.




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