What Kind of Auto Loan Can I Get After Bankruptcy
by Moya
(Pompano Beach, FL)
I was approved for an unsecure credit card of $500 4 months ago. What are my chances of getting pre approved for an auto loan of $16,000 with a reasonable rate (12-15%)?
Bad Credit Auto Loans - Auto Credit Express�
Answer: Hi Moya,
What kind of auto loan you can get approved for after bankruptcy and what rate you can expect to get will come down to what you've done in the past and what lender will approve you now.
I know that may seem obvious, but let me break that down a little further for you.
Some things the lender will look at are:
Have you had a $16,000 loan in the past?
How did you pay on it? Was this one of the accounts in the bankruptcy? Did you carry this through the bankruptcy?
What have you done since your bankruptcy?
I know you mentioned the $500 credit card and they will take that into account plus anything that may have been carried through.
Did you have overall solid credit prior to the BK or were there always issues?
They will also take into consideration things like your current income, time on job, time at residence and your down payment.
Good for You
One good thing here for you are that it has been 2 years since your BK as most lenders that will offer better rates do usually have a 2 year minimum after BK. In addition, your scores have recovered some as well.
What I Think
I'd say that a credit union would be your best bet under the circumstances. If you can get a credit union to approve your auto loan, then I'd say your rate would probably fall right into the range you were hoping for.
It would definitely be easiest to work with a dealer that specializes in bankruptcy auto loans as they more than likely work with multiple credit unions and lenders that will say yes!
Either that or you can guess and go credit union to credit union and bank to bank on your own until you find the right one...It's up to you!
Of course, there are many variables that I am not aware of here so I couldn't say for sure what a bank will or won't do in this scenario.
On top of the variables, I'm also not that familiar with the lenders and credit unions in your area, but you can ask yourself the questions the banks will have from above and the stronger your answers are the better your chance of approval.
Hope this helps,
Justin
