How to Get a Low-Interest Car Loan After Bankruptcy

Just because you have a bankruptcy does not mean you can never get credit again. Many lenders are glad to lend you money after a bankruptcy because they know you cannot go bankrupt again for at least 7 years, and you actually become a good risk to them. Get a low interest rate car loan even though you filed for bankruptcy.

Instructions

Difficulty: Moderate

1. Send for your credit report right after your bankruptcy is closed. Credit Infocenter is an online site that provides contact information from all three credit-reporting agencies (see Resources below).
2. Examine your credit reports when you receive them. Make sure you correct all errors before you apply for your low-interest rate car loan. The bankruptcy itself should be the only negative item on the reports.
3. Do your homework before you apply for your low-interest rate car loan. Decide how much you can comfortably pay for a car payment and how long a term you want. Look at vehicles that allow these terms.
4. Use a car loan lender service such as E-Loan. Make sure you let them know about your bankruptcy and how much you can afford on a new car. Show them some responsibility by requesting a car loan you can actually afford (see Resources below).
5. Tell them what circumstances led to your bankruptcy and how you overcame those difficulties. Make sure they know about any positive recent improvements to your credit.
6. Take the best low-interest rate car loan offer. Pay on time for 6 months and then ask to refinance the loan at a lower rate.