Car Loan After Bankruptcy

 

Once upon a time, getting an auto loan after filing for bankruptcy was a formidable task, but not any more.  According to (investopedia.com), bankruptcy is a “legal proceeding involving a person or business that is unable to repay outstanding debts, in which the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy”.  With the ever growing costs of products and services, most consumers rely on credit to finance large purchases.  People who file for bankruptcy are no different.  Once you’ve been relieved of the debt obligations prematurely, lenders consider you a risky borrower.  The only way to reestablish your reputation as a less risky borrower is to start using credit again.   Buying a car after bankruptcy is one of the best ways for consumers to reestablish themselves as credit worthy individuals.

Do car loans after bankruptcy help?

 

An Equifax study from 2010 to 2013, “show that in aggregate, people with severe credit issues who got a car loan had a 62.5% increase in their credit score, compared to does who did not". Securing a car loan after bankruptcy and making your monthly payments in a timely fashion, lets prospective lenders know you can pay your bills on time.  This will undoubtedly help you in the long run because it will increase your credit score, and it will provide you with better access to credit while enhancing your financial state.

 

Take your first steps to get back on track by filling out our bankruptcy auto Loan pre-approval form.  Once you complete the pre-approval form, one of our automotive finance experts will contact you promptly.

Subprime Auto Loans

 

Subprime lending has grown substantially over the past few years because more financial institutions are willing to work with people with lest than perfect credit.  This new found willingness by financial institutions to deal with credit challenged consumers, has given many people the opportunity to stabilize and restore their credit standing.  All you need is an opportunity to prove to lenders that you are not a risky borrower.  We are experts with more than enough experience to structure your post Bankruptcy Auto Loan, the right way to meet lender requirements.

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An Auto Loan can have a very positive impact on Your Credit Score

 

 

There are many different Credit Scores that creditors use to assess your credit worthiness such as NextGen, VantageScore, EMPIRICA and BEACON, but the most widely used Credit Score is the FICO Score.  According to MyFICO.com, your FICO Score is calculated using 5 variables.  Payment history, Amounts owed, Length of credit history, Types of credit in use, and New credit.  I’m sure nobody told you all that when you took your first dive into the world of borrowing money and managing credit.  Most of us end up having credit issues because we did not receive adequate guidance on how to manage our credit.  In fact most of us don’t get adequate information of how to manage our finances.  Well there is no better time than the present to begin to reverse the trend in your favor.

 

Here are a few things you can do right now to help improve your credit score.

Set up automatic payments  Dispute errors on your credit report  Negotiate with creditors you currently owe  Get a secure credit card  Only use 30% or less of you credit card balance  Don’t close any old credit cards you have  Start paying on your outstanding loans because is reflects lower utilization of credit