How to Get a Car Loan After Bankruptcy Chapter 7 Or 13
In this article, I will explain how to get a car loan after bankruptcy.
You may be surprised that it’s not that big of a challenge.
Chapter 7 or 13 bankruptcy is not something that anyone just wakes up and decides that they want to do one day. The choice to file is not an easy one to make and usually comes after a long time of financial struggle. When you apply for a car loan after a bankruptcy, it’s good to have answers ready as to why you had to file.
There are lenders that help people after a bankruptcy get a car loan. The interest rates are typically a few points higher than prime and payments need to be well within budget. Fortunately, if you’ve recently had a bankruptcy discharged, you don’t have nearly the financial strain on you that you had prior to filing. This is a good thing in the eyes of lenders.
If you filed chapter 7, look to get better interest rates than if you file chapter 13. 13 is a higher risk category for lenders as there is no restriction to the number of years in between chapter 13 filings. In the lenders eyes, if you filed chapter 13, you could go refile tomorrow. Chapter 7 can only be filed every 7 years, so it’s a lower risk loan.
If you would like to get a car loan after bankruptcy… the best option for you is to try an online loan service that will match you with lenders based on your past credit history.