How to Get a Bankruptcy Car Loan

By: Jamie Hurley

If a bankruptcy if keeping you from driving the new car that you want then you are at the right place. Bankruptcy car loans are prone to dragging you down for years but it does not have to be that way anymore. Some lenders are prepared to work with you to find an online auto loan no matter what your credit score looks like.

Know what your credit score is

You have to understand how your credit score affects everything that you purchase through credit. Credit means that somebody trusts you to repay them for money that you are borrowing. When you don't repay what you owe it affects your credit score. Think of your credit score as a friend that you never paid back. Do you think that friend would lend you what they lent you the first time? Probably not. If you do not repay money, try to borrow too much money, try to borrow too often or have too much money borrowed at once lenders will most likely not work with you. If you declare bankruptcy then you admitted fault for not being able to repay your loans or money that has been borrowed. If you change your ways and do not abuse your new credit line then lenders are likely to see that you are being responsible and not living beyond your current means.

Buy a Car you can Afford - Used is sometime the best option

Everybody wants a brand new car but it is usually not feasible within most United States citizens incomes. You should not be spending more than 25% of your gross monthly income on your car payment. This means that if you make $2,500 then you should not spend more than $625 on your entire automobile expense a month. This includes your car payment, car insurance, and car warranty and gas expense. If you can find a new car that ends up costing less than 25% of your gross monthly income for all automobile related expenses then you are making a wise decision.

Improving yourself proves responsibility

Everybody has run into a situation that at one time or another which requires them to skip a payment. We learn from our mistakes, or at least most people learn from their mistakes. Be prepared to tell a lender why you declared bankruptcy. If it was because of irresponsible spending and borrowing then you should tell them that is why. Let them know how you made a mistake and did not fully understand how these bad decisions could affect your credit score. Do not explain your hardships since nobody wants to hear your sob story of how irresponsible you were. Tell them what you did to improve your credit situation (this shows you have learned a lot from the bankruptcy and are not the same person).

Try a Credit Repair Company

If you have already declared bankruptcy or are thinking of declaring bankruptcy you can try speaking with a credit repair company. They charge you a fee to fix your credit score on a monthly fee or one upfront payment. If you do not have money to spare for a service such as this then you should try purchasing a book from a local Barnes and Nobles on Credit Repair. Set a budget and stick to it making sure that you always pay your minimums. Pay off the highest interest rate loan first and work to the lower rates after you pay them off one at a time.

Use an online service that works directly with dealers

Since bankruptcy loans are often turned down by ordinary banks, there are services available to work directly with people with bankruptcies looking for a car loan. An online service that helps you get into a new or used car is DRIVERCREDIT.com. They accept employed, self employed and non employed people as long as you have proof of at least $1500 gross monthly income. They work with dealers who in turn work directly with lenders that will accept bankruptcy car loans.

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