Latest Articles
Loans UK– Loans to Suit Every Pocket
Human desires are unlimited but the finance that one acquires always seems to be scarce. Thanks to the diversity of loans available in the UK finance market which helps in fulfilling the desires and dreams of millions of the UK residents.
UK...
Second Home Equity Mortgage Loans
This article provides useful, detailed information about Second Home Equity Mortgage Loans.
The people in the market today view a second home-equity mortgage loan as synonymous with a second mortgage. A second home...
The History of Business Loans
The first business loans possibly date back to ancient Greece. One of the most important services offered by Greek bankers was the lending of money to finance the carriage of freight by ships. They also lent money for mining, and construction of...
Auto Loans After Bankruptcy – Should You Finance A New Or Used Car?
Deciding whether to purchase a new or used car is a big decision, especially if you have just filed a recent bankruptcy. Of course, the decision is largely based on how bad you need a vehicle. There are valid reasons for financing a new or used car after bankruptcy. On the other hand, there are also numerous reasons to delay the car buying process. Before applying for an auto loan, carefully consider whether now’s the right time to finance.
When Was the Bankruptcy Discharged?
Once your bankruptcy has been discharged, you are free to finance an auto loan, mortgage, or acquire a credit card. However, you will incur huge finance fees or interest. For the most part, financial experts recommend waiting at least six months to a year before financing a large expense.
The interest rate you receive on an auto loan immediately following a bankruptcy will be approximately three percentage points higher than the average loan. This will significantly increase your monthly car payment. To avoid high fees, wait until your credit improves.
Have You Established New Credit Accounts?
After a bankruptcy, it is vital to establish new credit accounts. Bankruptcy gives you the opportunity for a fresh start. Thus, you should apply for new credit cards, department store charges, gas cards, etc. The only way to improve your credit score after bankruptcy is to open new accounts and maintain regular
payments. In time, your score will rise, which justifies a better rate on your auto loan.
Choosing an Auto Loan Lender for New or Used Car
If you decide to purchase a new vehicle, the next step involves selecting the right lender. There are quite a few options available. You can obtain financing through a new or used car dealership, or you can secure your own financing. If possible, compare rates from at least three to four money sources. Contact your bank or credit union and inquire of their rates. Notify the lender of your current credit status.
In most cases, you will have to secure financing through a sub prime lender. Some traditional auto loan lenders may offer these types of loans. Another option involves taking advantage of online auto loan brokers.
Brokers will thoroughly assess your credit application, and match you with various lenders. Next, the broker will email you quotes from these lenders. You pick the most desirable loan package.
About the Author: View our recommended Car Loan After Bankruptcy lenders or view all of our Recommended Auto Finance Lenders Online.
Source: www.isnare.com
Written By: Carrie Reeder