You might find your vehicle financing options are limited after filing for bankruptcy, but this does not mean you don’t have options. Obtaining a vehicle loan is often a great start to rebuilding a positive credit profile. While obtaining a car loan is going to be trickier than before, you will find there are various online loan companies that offer bankrupt and blacklisted individuals the opportunity to obtain financial aid.
The first step is to obtain your credit report from all three bureaus: Experian, TransUnion and Equifax. This will help you to understand your credit score and can help when you are negotiating with lenders. Some things you can do to increase your chances of being approved for a vehicle loan:
- Have a deposit/down payment available; 20% of the value of the vehicle you are interested in is a good amount.
- Consider getting a co-signer on your vehicle finance agreement.
- Only apply for finance with reputable online financing companies and attach a comments page to your credit rating information explaining the circumstances for your bankruptcy.
- Have all financial documentation available to prove you can afford the monthly instalments. These include letter of employment, bank statements and payslips.
How to get vehicle financing after filing for bankruptcy
There are a few setbacks after bankruptcy and one of them is how vehicle financing companies view you .