Starter Tips on Taking Out Car Loans for Bad Credit While Bankrupt

Dealing with bankruptcy is something nobody wants. It is one of the toughest, most humiliating things that anyone can ever go through. It severely affects one’s quality of life, and the worst part is that everyone depending on the bankrupt person will go through the same struggles, albeit on a different level.

Still, bankruptcy is not the end of the world. You just need to seek legal assistance to help you through the process.

 

Review Credit Records

If you haven’t checked on your credit reports and FICO scores, now would be a good time to do so. Getting your credit report is free, anyway, so there’s nothing stopping you from getting one. 

Check the details in your report and look for the items that are helping keep your credit rating low. If there are certain items or details that need to be revised, do so to upgrade your records. It will not remove the bad credit rating, but it may still help.

If you have an existing car loan which you took out before the financial issues occurred, simply reaffirm the loan. If the option isn’t available on your credit report, then get proof from your previous lender that such a loan was made. Lenders will want to have greater reassurance that you will be able to pay them back as bankruptcy has made you you a high-risk borrower. 

Applying For A Used Car Loan

In case you need a car, some car dealers give out car loans for bad credit. You may be asked to show proof of ability to pay, usually through a certificate verifying your employment. They will usually determine this by looking at how much you are earning versus how much the expected monthly or annual due of your car loan will be. 

This is why it’s important for you to have a steady stream of income from a stable employment--which is why they will ask for a certificate proving your work status. Understandably, the lenders will want to make sure that they will not be put in a compromising spot should they approve a loan that a borrower later defaults on. The more stable your job is, therefore, the better your chances are at getting bad credit used car loans approved. 

It’s never too late for you to get your financial standing back on track. With bad credit finance dealers such as Dick’s Hillsboro Hyundai, you can be driving off to a brand new beginning soon. 

Sources:

5 Options for a Car Loan in Bankruptcy. Bankrate. 

Are There Care Loans for People with Bad Credit? Credit.  


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