Consumers emerging from a bankruptcy may find that they can reestablish their car credit with a bad credit auto loan
What we do
There are hundreds of web sites on the internet competing for your attention if you have less than perfect credit and you’re hoping to finance your next car with a bad credit car loan. The best of these sites, such as autocreditexpress.com, can help you raise your credit scores and reestablish your car credit by filling out an online bad credit car loan application and financing a vehicle with a second chance auto loan through that site’s affiliate car dealers.
Just as importantly, the best of these sites also provide their applicants with the information they need in order to make educated decisions about the kind of loan they should choose (such as a tote the note loan versus a bad credit car loan). The reasoning behind this is simple: a bad decision at this point in time could result in a loan these people can’t afford which could turn into in a repossession that could lower their FICO scores even further.
One of the most frequently asked questions we get here at Auto Credit Express is from customers who have experienced a bankruptcy and are wondering if they can still finance a car. In fact, a car loan is very possible after a bankruptcy and is a great way to re-establish your auto credit. There are, however, a couple of questions that need to be answered before you fill out an application.
The type of bankruptcy matters
These are the two types of personal bankruptcies. A Chapter 7 bankruptcy is fairly short and is usually over in a matter of months. A Chapter 13 bankruptcy can last either 3 or 5 years. If you are currently in a Chapter 7 bankruptcy, you will need to wait until it has been discharged.
If you are currently in a Chapter 13 bankruptcy, you will need to contact the Trustee and have him request an order to incur additional debt from the court. Since your Chapter 13 bankruptcy is based on your income and expenses, you need to get permission from the court before you take on any significant additional debt, such as a car. If the court approves the request, they will furnish you with the document. Make sure you have this document when you apply for a car loan, because you will need this as proof that the court will allow it. The order also states the maximum amount the court will permit you to borrow.
Discharge or dismissal
There are actually two ways of completing a bankruptcy. A bankruptcy can either be dismissed or it can be discharged.
If you bankruptcy has been dismissed – and this is more common in Chapter 13 filings than in a Chapter 7- it means that the person that filed the bankruptcy has ignored the court order by failing to make the required payments. If you bankruptcy has been dismissed, no bad credit lender will approve you for a second chance car loan.
If your bankruptcy has been discharged, it means that you have followed all the court’s guidelines and you have successfully completed your bankruptcy. At this time, the court will issue a letter of discharge. Keep this document, since you may need it as proof the bankruptcy has been discharged (the credit bureaus may not have received the discharge information yet, so the lender may require a copy of it).
Now is the time to start rebuilding your credit.
View your credit report
You can either request a copy of your credit report at no charge by contacting each of the three credit bureaus or, for a fee, you can receive all three reports plus your credit scores from sites such as www.freescore360.com. Once you receive the reports you should notify the bureaus through their dispute processes if you find they contain any errors.
Types of credit
There are two types of credit – revolving credit and installment credit. You need to re-establish yourself with both types.
An example of revolving credit would be a credit card. If you don’t qualify for a regular unsecured credit card, apply for a secured credit card, where your credit limit is determined by funds you deposit in a bank account. Look for a company that will switch it over to an unsecured card in 12-18 months, provided you make all your account payments on time. It’s also a good idea if you only use 30% of your credit line.
A car loan is an example of installment credit. Fortunately, web sites such as www.autocreditexpress.com can help you get your car credit reestablished with a bad credit car loan.
The Bottom Line
Even if you’ve gone through bankruptcy, you can still qualify for a car loan. Auto Credit Express has helped thousands of people, after bankruptcy, buy cars and reestablish their auto credit at the same time. Our nationwide network of affiliate dealers specializes in bad credit car loans. So if you are serious about getting your credit back on track, you can begin the process right now by filling out our secure online bad credit car loan application.
For more information, feel free to visit www.autocreditexpress.com to see what we can do for you.
