How Long to Wait For an Auto Loan After Bankruptcy
Author: Jennifer Quilter
I'm sure that if you were willing to pay any rate you could find a way to do things immediately, but how long to wait for an auto loan after bankruptcy as part of a plan to build up your credit and get a better rate requires some patience and effort. While you'll probably still get a high rate unless you borrow money elsewhere first, you can improve your rate slightly and better work this in as a part of your credit rebuilding plan.
The first thing you want to do after you discharge is get a copy of your credit report and make sure that things are reported accurately. It is extremely common for companies to not update your accounts as “included in bankruptcy”. Any accounts still marked as open, or with balances that you owe, count against you. Keep calling companies until they change your report to a zero balance and included in your discharge.
The next thing you want to do while waiting for an auto loan after bankruptcy is obtain a secured credit card. You can get one of these at your bank. You'll want to use this very lightly, less than thirty percent of your limit, and pay it off in full each month. When you go to apply make sure that the bank reports your usage to the three major credit bureaus. As long as you pay this in full each month, this will give you a nice history of on time payments and credit use.
Making sure you make all of your payments on time each month is a big part of rebuilding your finances. You don't want any new black marks on your report, so make sure you don't get in over your head borrowing money for a car, or using your new card.
After using this steadily for about a year I'd recommend going ahead and looking to borrow money again. You'll have a hard time finding approval still, and be offered high interest rates, but paying on time will help you rebuild your credit, and whether it's for a car or something else they'll continue to offer you high rates until you build up more history with loan payments.
So, how long should you wait for an auto loan after bankruptcy? Wait until you have your finances under control again, have a correct credit report, and have started slowly using your credit again.
Article Source: http://www.articlesbase.com/loans-articles/how-long-to-wait-for-an-auto-loan-after-bankruptcy-1693667.html
About the Author
The more you know the better. Visit my site for more information about bankruptcy car loans and deals that offer guaranteed car loans, and what that really means.
what percentage rate can I get for an auto loan with bad credit (no bankruptcy)?
I want to simply find out what, on average, the credit rates for an auto loan would be for someone with mediocre credit living in california.
What are my chances of getting an auto loan with 630 credit score, bankruptcy a year ago, and a repo?
I make about $3300 monthly gross. Do I have a decent chance of getting a car loan of about $25k at a decent rate? If so, what rate should I expect?
I forgot to note that I would also be putting down $4k. I would still be financing $25k, though. Will the down payment make a difference?
What would the average interest rate be for someone getting their first auto loan post-bankruptcy? Score: 525?
What is a good auto loan APR?
I need to know what the best rate would be for someone in my situation.
I live in NE Ohio, and I have just filed bankruptcy. I am not sure what my credit score is, but it can’t be good. Prior to losing my job, I had excellent credit and an auto loan rate of 5%.
I don’t want to be taken advantage of, at least not to the full extent. We all know how car dealerships are.
I am looking to buy a used car. I need something reliable to get to and from work.
looking for a reputable post bankruptcy auto loan source. please help!?
ok, my mind is blown from all of the “post bankruptcy loan” sources online! theres just too many and im not going to run my credit that many times to try and find the best rate, lowering it further, so i need your help… ok, i was discharged from bankruptcy a year ago. since then i have two credit cards for about a year that are NOT maxed and are paid on more than required. however, my credit score is 586. im looking for the lowest possible interest rate, for my credit history( i know im not going to get prime rates). im just looking for a REPUTABLE, known place that will almost guarantee me an auto loan. i want to be one and done. lol does anyone know of a good post bankruptcy auto loan source? thanks!
I don’t know of any places.
But I do know a little secret that you may not be aware of.
You can bring up your score sharply by paying off those credit cards.
I have achieved 800+ scores just by using cards for things I need and paying in full each month. Like gas and food.
Carrying balances over 30% of your available credit is destroying your rating.
Just letting you know – some people out there actually think that carrying balances is good – for some reason.
/
Try lendingtree.com. This is where I got my autoloan from. I had my check to buy my car in a week. You under no obligation if you do not like any of the offers that you get from the banks.
Why is your score only 525? Pull your credit reports yourself and make sure each debt says something like “included in bankruptcy or discharged in bankruptcy.” All of the amounts for the previous debts should be “0″. If they aren’t, contactact the credit reporting agency and tell them that debt was listed in bankruptcy. They have 30 days to verify the information. If they can’t they have to remove it. E mail me if you have problems or need further advice.
Yes, I don’t see how you could even get a loan. You must have excellent credit usually to even qualify for a low interest car loan. I have 1.9% on my Honda Accord Coupe, but that is because it was bought new and we have great credit. You can usually only qualify for 0% and low interest loans if you buy a NEW vehicle, which it doesn’t sound like you can in your situation.
If I were to get a loan and I was in your situation, I would settle for something around 8% or 9%. That actually sound outrageous to me though…
You won’t get a loan for that much. With the bankruptcy and a repo I’d be shocked if you get approved for anything. No offense, but you’ve proven you can’t handle paying it back.