If you’re interested in purchasing a new car, the options are endless. However, if you have filed for bankruptcy, that can significantly reduce your options. In the past, securing a loan after bankruptcy was virtually impossible. Today, lending agencies are more forgiving. While bad credit due to bankruptcy may limit your options for financing, it does not make it impossible to obtain.
If you are looking to secure a bad credit car loan after bankruptcy, here are a few things you can do to make the process easier:
Check your credit history
Before applying for any kind of loan, the first thing to do is check your credit history. You can check your score on various sites online or by visiting a credit bureau. Checking your credit score will give you an idea of what car you can realistically afford. Doing a full inspection of your credit history also allows you to dispute any discrepancies you may find in your report. If you are a long way from your purchase, it also gives you a chance to take the necessary steps to improve your score.
Plan your purchase carefully
Purchasing a car requires careful planning even more so if you have bad credit. Careful consideration before your purchase will help to ensure that your new car will not further compound your debt problem. It would be helpful if you put together a budget to get a good idea of what your expenses will look like once you have made your purchase and determine how much you can afford to borrow, at what interest rate, and for what loan term.
An essential part of proper debt management and the first move towards improving your credit score is maintaining monthly payments on debt you have already incurred. Showing that you can not only make your monthly payments but do so on time will also go a long way in determining your suitability for a bad credit car loan.
Consider your options
If you’re thinking of purchasing a car, you could select dealer financing, banks you already have a relationship with, or online lenders. Whichever option you choose, ensure you carefully consider the terms and conditions before signing to accept an offer.
Use collateral to secure your loan
While a credit check would usually be the first and most important step in a loan process, there are instances in which a poor credit score does not carry as much weight. For example, if you are using collateral to secure financing.
Applying for a loan after bankruptcy with Instant Auto Loans
Accessing car financing with bad credit may seem a bit daunting. We can help simplify the process at Instant Auto Loans.
Instant Auto Loans is a family-owned and operated automotive financial institution with locations in Burnaby and Surrey, BC, offering instant loans based on vehicle equity.
We offer our clients courteous and confidential service, and if you wish to use a current motor vehicle as collateral to secure financing, you can qualify for one of our loans in as little as 15 minutes.
Give us a call to learn more about our instant loans or apply online today.