For a lot of people a bankruptcy can be a stressful process. However, the truth is that life does not end at chapter 13 or 7. Once your bankruptcy is dismissed you need to once again start building some credit. This can easily be achieved by getting a few credit cards and then trying to get auto loans. Getting auto loans after chapter 13 or 7 bankruptcy is not easy. As a matter of fact it can be really difficult as lenders are not very trusting of you. You may also have to offer some from of collateral or a down payment in order to be considered for auto loans.
Here are a few facts about life after chapter 13 or 7:
A chapter 7 or chapter 13 bankruptcy shows on your credit report for a period of seven years. Also your bankruptcy remains on your credit report after dismissal for a whole decade. So it would be advisable you think out a strategy or wait the term out.
Since you have been through a bankruptcy the lenders are going to be reluctant to offer you auto loans. Some lenders will explicitly mention that they don’t do business with people that have been bankrupt even if their bankruptcy was dismissed.
Try searching online for auto loans lenders that offer auto loans with people who have bankruptcy on their record. There are a number of lenders willing to help realize dreams of people with bad credit. Shop around and get a number of quotes for your loan. It would be wise to fill the online forms with as accurate details as possible. Also remember to inform the lender as to the reasons to your bankruptcy in the remarks section.
Offering to pay a down payment as well as showing collateral are also some ways to better your chances of getting approved for the auto loan for they prove to the lender your willingness to rebuild your credit. Regardless of what happens, don’t expect to get the same 4% interest rates you would have got with a prime credit. In theory lenders justify their high interest rate with the fact that doing business with people who have been bankrupt is a big risk probably because they tend to make the same mistakes that they did that actually led them towards a bankruptcy.