Car Loan After Bankruptcy

There’s no doubt that money is hard to come by these days. If you’re looking for proof, then just take a look at the number of car loan applicants who got rejected because they have been otherwise neglectful in paying their monthly bills and obligations. Everywhere you look, you see a few people filing for bankruptcy. But despite this, a lot of people continue to make requests for car loans. Why is this?

One of the major reasons that the car loans industry continue to thrive even when one out of five people has at one time in his life filed for a bankruptcy is that many lenders offer programs that are geared specifically to address such problems. Lending institutions that are aware of how difficult it is to find car loans with bad credit or bankruptcy understand the need for car loans. These car loans can help borrowers with bad credit or bankruptcy who would otherwise be rejected for a loan on their type of credit.

The Bankruptcy Myth

It is the belief of many that once you’ve filed for bankruptcy or developed bad credit, you will never again qualify for a car loan, obtain a credit card, or acquire a home mortgage. Perhaps this holds some truth in prior decades. However, the only reason why this myth continues to exist today is not because it’s just not possible to borrow money with a bankruptcy record but because of inaccurate threats made by unscrupulous credit collectors. The fact is, even the worst credit and bankruptcy can still entitle you to car loans, credit cards, or home mortgages.

Let’s take one situation for example. Let’s say that only a couple of years ago, you leased a truck. In April of this year, you filed for bankruptcy. Next May, the lease for your truck would be up and you would have to turn the vehicle back into the dealership. This is a pretty common scenario. Now your problem is that you desperately need a vehicle and with your lease almost up, where do you turn to? You need a car loan; that should be obvious by now. But with your bankruptcy record, could you find any lender who would be willing to approve you for a car loan?

Below are some ways that can help you get out of that sticky situation.

Check for the “Special Financing Section”

One good thing you can expect with bankruptcy is that once you get your discharge papers, you can get a car through some dealerships. Try to call any local dealers in your area and ask them if they have any “special financing” department that handles bankruptcy cases such as yours. Chances are there will be a car loan program that’s tailored for you. The only downside to this is that interest rates won’t be low. But with your bankruptcy, high car loan rates are nothing unusual.

Membership to a credit union helps

You can also try using the credit union at your place of work. You can apply for a membership and purchase a share, which is $25.00 deposited to your savings account and apply for a bankruptcy car loan the same day. If you don’t have a credit union at work, you can check credit unions in your area. Some home organizations and church affiliations have credit unions where you can apply for a bankruptcy car loan.