What Should You Know About Getting Auto Financing After Bankruptcy?

Going through bankruptcy can be stressful for individuals. Often, lenders will not even give people a chance if they have a bankruptcy on their record, even when it has been discharged. It is important individuals understand their options for getting auto financing approval, even if they have a bankruptcy on their record. With this information, individuals will be fully prepared.

Help for Getting Financed

Although it is more difficult to get auto financing with a bankruptcy, it is not impossible. The following steps will help individuals to get the approval they need, regardless of their credit score or past bankruptcy activity.

  • Researching lenders is crucial for being able to discover ones that handle past bankruptcy. Companies like Consumer Portfolio Services are committed to help individuals with problematic credit scores and records. Finding the right lender simply takes a little research.
  • A lender is more likely to be willing to take the risk if the individual has more money to put down on the downpayment. If a person is lacking a downpayment, taking time to save money will be worth the effort.
  • Individuals cannot purchase a car while their bankruptcy is in effect. It is important to wait until it has been discharged before starting the process of seeking financing.
  • While it may be tempting to purchase a new car, it will likely be wiser for individuals to attempt to get approval for a less expensive used car until their credit improves. Many used car dealerships offer their own financing with easier terms.
  • If a person’s credit score is poor, working on their score is important. Checking for errors and paying off old debts is helpful in improving a person’s score and ensuring they are able to obtain better financing.

Learn More Today

Yes, getting auto financing with a bankruptcy on your record is going to be more difficult, but it is not entirely impossible. There are companies, like CPS, that are willing to work with high-risk borrowers and help them finance the vehicle they need.

Visit the website today and you can learn more about the services they offer. Give them a call if you are ready to get started.