Easy Car Loans and Auto Financing

You investigated all your options and alternatives back then, and bankruptcy was your best or perhaps your only solution. That is unfortunate, but you are on the road to recovery, and your previous status does not mean you cannot get a car loan after bankruptcy. In fact, you no doubt learned some very valuable lessons from your experience, and the truth is that you are very likely a better credit risk today than you were before you filed!

The truth is that many lenders recognize this -- the fact that you learned some very valuable lessons from your bankruptcy, and are more than willing to help you get back on your feet from a financial standpoint. While you may not get approved for a Corvette or a Lamborghini, there should not be a problem in getting you approved for a new car. The fact that you have already experienced bankruptcy, while a significant financial indicator, also states that you are much less likely to go through that again.

Before you start shopping or even talking seriously with car dealers, you should visit each of the three major credit bureaus, which are TransUnion, Experian, and Equifax. What you want to do is to add a "consumer statement" to your credit report. You see, the fact that you filed bankruptcy is going to be a huge neon-flashing sign on your credit report, when they pull your credit report after you file the loan paperwork. Knowing that is going to be there, you want to take steps to present that in the best light possible. You are allowed to add a consumer statement to your credit report where you will explain, as briefly as possible, the reason you had to file bankruptcy. Perhaps it was unforeseen or unavoidable, such as a major illness, unexpectedly large medical expenses, your business partner ran off to Brazil with the business checking account, whatever. If it makes logical sense for a valid reason to file bankruptcy, then add it into your credit reports, and doing so will give you the best chances of being able to qualify to get approved for a car loan after bankruptcy.

Now keep in mind that the lenders are still business people, and they are unable to totally ignore the fact that you filed bankruptcy. As a result, the interest rate they will quote will likely be on a high side, compared to what it would be without that negative mark on your credit report. But the good news is that it can still happen.

A more time-consuming strategy, although with greater returns in the long run, is to take the necessary steps to fix your credit report. There are a multitude of things you can do without the help of an outside agency which can add hundreds of points to your score. For more information on this, you may want to visit Raise Your Credit Score where there is great advice and many tips on how to do this.

Most lenders will understand that sometimes there are valid reasons for being required to file bankruptcy, and you can still get a car loan after bankruptcy. The first thing you should do is file a consumer statement with each of the credit bureaus. On your credit report, the consumer is allowed to add a statement of limited length to describe a circumstance or shed additional light on the report. If your bankruptcy was caused by things that were totally outside of your control, then you should add that consumer statement to your credit report with each of the major credit reporting agencies, which are Experian, Equifax, and TransUnion. This consumer statement will outline, briefly, the reason for your need to file bankruptcy, such as a serious illness, the death of a family member, unexpected medical expenses, a business partner running off with capital assets, or whatever the reason was.

Now in order to get a car loan after bankruptcy, what will happen during the application process is that, of course, your credit report will be pulled. Perhaps the major lenders will be androids about the process and not read the consumer statement, but if not, most of the secondary lenders will read the consumer statement, and then make a judgement call as far as your application. They will most likely not offer the prime or best interest rates, but at least there is a good chance that you will get approved.

Depending on how long it has been since you filed bankruptcy, a superb credit history since your filing will also go a very long ways towards helping your case and showing that you are sincere about turning your financial life around,and every little bit helps. In fact, if you are doing well financially since your bankruptcy, you may even have multiple options for financing, and it could be easy to get a car loan after bankruptcy.