A car loans after a bankruptcy is one way to help build back your credit history. In fact, once your bankruptcy closes, you can apply for a car loan the next day. To get approved with the best rates for your car loan, follow these tips.
Review Your Credit Report
Before you start applying for a car loan, check out your credit report and make sure all your accounts are in order. It is not uncommon after a bankruptcy to see open accounts that should be closed, which hurt your credit rating.
While looking at your credit report, consider adding a page explaining the situation that resulted in your bankruptcy. If there were extenuating circumstances, lenders may approve you for a better rate than under normal conditions.
Plan Your Car Purchase
Before purchasing a vehicle, decide what you can afford in a monthly car loan payment. This will help you decide which financing package is best for you. Both the loan amount and length of payments will determine your monthly payments, so there is flexibility in determining which vehicle you can afford to purchase.
Use A Car Loan Lender
Car loan lenders make their money by finding you a loan. Car loan lenders work with several financing partners to back loans with all types of credit risk, including bankruptcies.
Online car loan lenders deal with thousands of loans, and can usually find you a better deal than your local car dealerships. Online car loan lenders will send you a check when you are approved, basically making you a pre-approved car loan buyer.
Explain Your Situation
Car loan applications will ask if you have ever declared bankruptcy and why. This is your chance to explain what led up to the situation and what steps you have taken to resolve your credit situation. Be sure to include improvements in your financial history too.
Consider Refinancing
Once you are approved for a car loan, keep your eye on future refinancing. By making regular payments on all your bills, in a year’s time you could qualify for significantly lower interest rates. In three years, you can build your credit score to near excellent and qualify for even lower rates.
To view our list of recommended auto loan companies online, visit this page:
Recommended Auto Loan
Companies Online.
By: Carrie Reeder
Posts Tagged: Online Lenders
27
Oct 09
Online Loans FAQ – Getting a Bad Credit Motorcycle Loan
This article is chalked full of facts about getting approved for a motorcycle loan when you have bad credit. Read on to find the answer to your pressing questions.
1. I have bad credit. Can I be approved for a motorcycle loan?
• Yes you can! There are lenders both online and otherwise that specialize in financing people for motorcycles who have bad credit and even bankruptcy.
2. What should I do before I apply for a motorcycle loan?
• Before you do any research at all, you should have a clear understanding of what you can afford to pay. Doing so means you are well versed and aren’t searching blindly. A great way to understand you credit situation is by getting a copy of your credit report. Doing so provides you a view of where you are, who you owe and allows you to correct any discrepancies.
3. Where do I apply for a bad credit motorcycle loan?
- When looking for such a loan going to the dealerships and banks will more than likely be a daunting experience. Try applying with online lenders first. Online lenders offer a swift approval and better interest rates. Try getting quotes and continue shopping around online which would give you a leg up on negotiating your loan.
4. What are the common requirements of online lenders?
- A steady job earning around 300/week or more
- You should be a U.S. citizen and have a SSN or TIN
- You must be 18 years of age or older
- Have a steady and positive employment record.
- No bankruptcies in the last eight year.
5. How long does the online approval process take?
- The processing time varies dependent upon the lender. A good online lender can usually get you an answer instantly or can take as long as 24 hours. After the approval, you’ll be presented the loan amount, interest rate and the loan specifications. Should you choose to take the loan, you will receive instructions on how to get your money within 12 to 24 hours.
6. What will my interest rate be?
- Your interest rate is a direct reflection of your credit rating. If you have a good credit score, you shouldn’t pay more than a 5% interest rate. Whereas, if you have a low credit score you should be prepared to pay an interest rate between 12% and 15%. Other factors include your down payment or co-signer (if you have either).
These questions are both common and imperative. If you didn’t see your question or get the answer you were seeking, check out our other articles on motorcycle loans!
By: Bill Gatton
21
Oct 09
Home Loans – A Feasible Financial Help Against Your Home
Home is the most common asset with you that is frequently used to avail finance. For the many reason you may need a hefty sum. Generally, availing a large sum requires pledging of your assets against it. You can better utilize your home to avail a good sum that is easily possible with home loans.
Home loans are type of secured loans that are obtained pledging your home as collateral. Thus, your home assures the certainty of repayment of lent money and arranges a low interest for you. Thus, you have a chance to make out your several expenses with a very low cost with these loans. Here, you have freedom to utilize the amount on any of your expenses like, college fees, renovation of home, luxury holidays, outstanding bills, or debt consolidation etc.
You are provided with a good sum with home loans. The amount of the loan depends upon the equity value of the collateral and can be up to its total value. The general amount that you receive here ranges from £3000 to £75000 that can be repaid over a flexible period of 25 years.
To avail them you have the option to choose either the traditional lenders or online lenders. Since, you never will like to invest much of your time on availing a loan; online lenders can be best resort for your condition. The online option helps you saving a lot of your time and accessing several lenders at a time.
Even with one’s bad credit one can avail home loans, as your bad credit is not taken into account while it is being approved to you. Thus, you can apply for this loan even if you have CCJs, arrears, defaults, arrears, bankruptcy etc.
Now, you have an opportunity of a viable financial option with the home loans. The lower interest rate effectively helps getting cheap financial option. Here, you need to worry for the volume of amount, as it can arrange a large range of amount for your needs.
By: Dina Wilson