Effective Ways to Prepare for a Car Loan After A Bankruptcy

No matter how much you've loved your vehicle and how well it has served your needs over the years, the time will probably come when you'll need to part ways with it. When you're ready for an upgrade or change, there are some simple steps you can take to help ensure you can get a loan for your next vehicle after a bankruptcy.

Pay off Debt

It's difficult to avoid debt, even after a bankruptcy with homes, children's education and cars. When you want car loans, though, it's important to get rid of obligations such as credit card debt or any post bankruptcy debt. If you can't totally eliminate these debts, do your best to pay down the balances. This will free up cash and will show the finance team at Credit Now and potential lenders that you have enough money to make your monthly payments.

Come With Cash

You may not have enough money in your pocket to pay for a car with cash, but if you can make a down payment, you'll have a much better shot at qualifying for the loan you want. If possible, put a few thousand down. This will reduce your purchase price and monthly payments. It may also offset some of your debts or even poor credit.

Improve Your Score

One of our finance managers will review your credit history and credit score to determine whether you are a good candidate for a car loan. If you have a poor score, you may not qualify, or you may get an unfavorable interest rate. We also have the advantage to offfer In-House financing when traditional lenders will not approve.

Trade It In

Your current car may still have some value left in it. If it does, consider trading it and putting it toward your next purchase. This could augment your down payment.

You should take these steps seriously if you want to qualify for a loan. These tips will increase your buying power and our team at Credit Now will work with you to ensure you get approved for a car loan, lease or In-House financing even after bankruptcy.

Have you been hesitant to replace a car that is unreliable and in need of replacement because you do not have good credit? Obtaining a new or used vehicle may be easier than you think. Bad credit car loans are available to many consumers who did not even realize that they would be able to qualify for financing.

Present Positive Financial Factors

Even if you do not have good credit, you may be able to present certain positive considerations to lenders that increase the likelihood of obtaining a loan. These factors include:

• saving a down payment
• being at your current job for some time
• meeting threshold monthly income amounts
• living at your current residence for a certain period

If you are able to present more than one of the above, it may enable you to receive better financing terms.

Research Your Options

Spending some time investigating different possibilities means that it is more likely that you will make sound financial choices when choosing a new automobile. Decide what kind of car best fits your needs while keeping monthly payments within your budget. Do not select a vehicle that forces you to overextend yourself financially.

Find the Best Financing

First, become an informed consumer by requesting and checking your credit report before speaking with a lender. Correct any errors, since a difference of even a few points can change the APR for your loan. Then, become familiar with competitive interest rates. An informed consumer is in a much better position to receive favorable loan terms than someone who has not done any preparation.

Bad credit car loans are available to many people who thought they had no hope of finding a way to purchase an automobile. By doing a little groundwork, you should be able to come away with a loan and a vehicle that work for you.

4 Myths About Buying a Car With No Credit

There is a ton of information about how to buy car when you have no credit. Some people claim you can't get an auto loan. This isn't true. In fact, there are no credit car loans that make buying a vehicle possible. But that isn't the only myth floating around. Listed below are a few others. Once you separate the myths from the facts, you can get the right car for the best deal.

Short-Term Loans Are Best

Generally, you will pay more interest with a long-term loan. Yet, financing the car for four or more years may work better for your budget. Always consider the overall cost of the loan and your monthly payments. Keep in mind, you can negotiate the terms.

You Can't Get an Auto Loan If You Have a New Job

The fact that you started new work shouldn't prevent you from obtaining a no credit car loan. Lenders look at your total work history. They understand reliable transportation is necessary for maintaining steady employment.

Huge Down Payments Are Required

No credit car loans don't require large down payments. Of course, the more you pay upfront, the better it is because it lowers your monthly car notes. Still, what you pay down has more to do with the loan terms and the type of auto you are buying.

You Can't Be Pre-approved

Even though you have no credit it doesn't mean you can't be pre-approved. Lenders consider factors in addition to your credit score. You have a better chance of approval based on you income rather than your credit rating. Although pre-approval isn't guaranteed, it is worth pursuing.

The more you know about no credit car loans, the better off you are. It takes some work dispelling the myths and identifying the facts. But once you have the right information, you can make the best decisions. Before you know it, you will be driving down the road in your dream vehicle.

Please fill out our secure online credit application and one of our finance managers will contact you promptly as we have helped hundreds of people with no credit get a car loan. This is also a great way to establish credit for the future.