Can I Get a Car Loan After Bankruptcy?
Bankruptcy can be a big step toward a more positive financial future. However, it may not seem so at first. It is possible to qualify for a car loan after bankruptcy by taking a few steps before applying. These initial investments in your credit don’t need to take long and can drastically improve the loan terms you are offered.
Rebuild Your Credit
After bankruptcy, rebuilding your credit could seem daunting. It shouldn’t, though, because there are several easy ways to get started. A secured credit card may be the most popular. These accounts give you a credit limit equal to a cash deposit you’ve made. This limits the risk for the financial institution. You may also have a friend or family member add you as an authorized user on their account. Even if you don’t use it, the positive influence from their card activity will affect your credit.
Have a Down Payment
When applying for a car loan, having a down payment is always helpful in proving credit-worthiness. The financial institution sees the applicant’s ability to provide at least some amount of cash toward the loan as proof they are good with their money and intend on paying the loan in full. There’s no set rule when determining how much you should put down on a loan, but the average is 10-20%.
Find the Right Lender
Some lenders specialize in high-risk loans to those who have low credit scores or recent bankruptcies. Their requirements for qualifying for a loan could be lower than a traditional bank. You should be prepared for an interest rate that’s much higher than the average. Still, it’s important to shop around for the best loan terms with the most reputable lender.
If you’ve been putting off bankruptcy, it’s time to speak to the experienced attorneys at Gingold & Gingold. Call (404) 685-8800 today to schedule a free initial consultation at one of our four conveniently located offices.
