Going bankrupt is one of the biggest red flag of your financial trouble, it’s an announcement to the world that you are no longer capable of taking care of your finances. This will truly be a grim time filled with stressful court processes and watching your credit rating take a nose dive, with a record of bankruptcy on your file for a long time.
However, this does not mean you can’t get a car loan, difficult? Yes, of cause but not impossible. You will need to fully understand the reality of your situation and the options available to you.
Here are tips on how you can proceed:
- Dealing with the stigma of bankruptcy: You must understand that your bankruptcy will stay on your credit report for a very time, and even though lenders understand that that stain will remain on your credit report for a long time they also understand that it doesn’t completely eradicate your ability to pay back on your car loan. You must prove to them that you are willing to fight off the bankruptcy stigma by finding a steady gainful employment as a first step.
- Have realistic goals: The road back to a good credit score is a long and frustrating one, so it is important to go for a car that is modest in price and get one of your family members or a very close friend with good credit rating to act as your co-signer. This could be one of a few good ways to convince the car loan lender to give you a chance, by showing them your co-signer’s financial stability and good credit rating.
- Full time employment: This is yet another obvious and highly reassuring way to convince your desired car loan lender, that you are serious and capable of making repayments on the car loan you are asking for.
- Spending and attention to details: Before you try to apply for a car loan, you have to be willing to take an honest step back to take a look your financial health, cutting back on unnecessary spending and taking a better care of your finance would go a long way to convince the car loan lender that you are now more of a responsible spender, capable of paying back your loan on time.
This won’t be an easy journey to regain lenders confidence in you and you will most likely receive a lot of rejections along the way, however, if you don’t give up and continue to persevere, then it would be seen by your eventual car loan lender as an example of your resolve and determination to improve your financial situation.