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3 Tips for Auto Loan Approval After Bankruptcy


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TERMINOLOGY

When you need an auto loan after you have had a bankruptcy, there are some things you can do in order to get your loan approved.

Tip #1: Repair Your Credit

If you have debts that are not included in the bankruptcy discharge, make sure you are repaying them on time. This will show your lender that you are trying to re-establish your credit rating.

Tip #2: Finding a Lender

If you are unable to get an approval with one lender, ask the car dealer for some sources they use for loans. Make sure the loan terms are agreeable before you finalize the paperwork. You can also check online for other lending sources, if you are not satisfied with the package the dealer’s lender offers.

Tip #3: Loan Specifics

Since you have had a bankruptcy, many lenders will not be willing to give you a preferred rate of interest. If this is the case, ask the lender if they will lower your rate if you increase your down payment on the auto purchase.

If you do not bank with this lender, you can also see if they will grant you a more favorable loan package if you move your account over to their bank, and have your loan payment taken out automatically.