Getting a car loan after a bankruptcy can be difficult for most people and close to impossible for others. Any kind of loan is hard to obtain after a bankruptcy because it creates a negative mark on your credit report. But it is possible for people in even the direst financial situations to get a car loan after a bankruptcy. Some factors considered by a dealership when getting a car loan after a bankruptcy are when the bankruptcy was finalized, and your current job situation and income level.
If you have a bankruptcy that has been finalized within one year, most lenders and car dealerships will not be willing to give you the best deal, or they may not want to work with you at all. Unfortunately, a bankruptcy will remain on your credit report for at least seven years, so it may be tough to find a good, reputable lender. There are lenders that will try to overlook your bankruptcy before the seven years is up and create an opportunity for you to make a fresh start.
Lenders of car loans want to make sure that you can currently pay back the monthly installments of the loan. It is possible to slowly rebuild your credit by getting a car loan after a bankruptcy if proper payments are made each month. This is a very effective way to get your credit back on track while obtaining a much-needed vehicle. You should figure out your monthly income and how much cash you have. Try to save as much as you can before attempting to get a car loan. The more money you have to put down on a car, the better your chances of getting a car loan with a lower interest rate.
There are many lenders to choose from online that can offer a car loan after your bankruptcy has been discharged or finalized. The most important thing to remember is that you will not get a low interest rate. The interest rates offered may be lower the longer you wait to apply for a car loan.
Here at Driveline Auto we are #1 with several of Western Canada’s largest lenders, we treat every situation uniquely and have an excellent track record of getting our customers approved after bankruptcy. Our goal is to make it as affordable as possible for you to be approved for a car loan. Please fill out our secure online credit application and one of our credit specialist will contact your shortly.