# 1 Car Loans

Is your credit history coming in the way of your dream to purchase a brand new car with the help of a loan? Are banks turning you down because your poor credit? This article must give you good respite from the same old excuses for not granting you the car loan to buy your dream vehicle. Bad credit car loans do not consider the history of credit when lending. They, in other words, these institutions which offer bad credit loans consider the people first and go ahead to give them a chance. There have been numerous cases where people have benefited from obtaining bad credit car loans and have also managed to build credit at the same time.

Like in any other loan obtaining procedure, here too it starts with the application process. Before applying, do the necessary homework. As far as money matters are concerned and you are the person with more stakes in the dealing, it is better to be safe than sorry. Read all the terms and conditions of the institution granting the bad credit car loans. Look for hidden meanings. Discuss it thoroughly with a financial counselor if possible. Get all your doubts cleared before you apply for the loan.

Filling the application is child’s play. There are some details that need to be given at the time of application. These may include documents as proof of identity or for the want of proof of address. A driving license of a copy of the passport will suffice. You may have to attach these along with the application form. The application form may be filled online too. Many banks offer this service which is a lot more convenient.

Once the application has been submitted, it is scrutinized by the concerned officials and most of the cases the loan is sanctioned if certain conditions are satisfied. Going through an agent also turns out useful when it comes to obtaining student car loans. These agents are in touch with many lenders in the regions where they operate. Once your application has been filed, depending on the requirements, they will find a suitable lender for you. You would however be dealing with the agent only.

Sometimes when banks turn down your application due to poor credit history, such agents come in useful. There are many agents who operate online too and can be easily contacted. It is however advisable to be a little more careful as chances of being cheated in this case is more. If you are dealing with an agent to obtain your car loan, make sure he is a trusted one and has enough proof to show the same.

The interest rates on bad credit car loans are slightly higher than the normal car loans. Beware of rates fluctuating due to change in economy and make sure that you will have the necessary funds to repay the loan when it is time. Make sure that you are well prepared to repay the loan with the interest because the failure to do may lead to some unpleasant consequences. Do not take a chance.

You have filed for bankruptcy! What is the status of your credit rating? Will you get a car loan on declaring bankruptcy? Innumerable questions surface on the mind regarding bankruptcy car loan. Bankruptcy stays with an individual for 10 years and the bad credit rating that has accumulated for 7 years. However financing on bankruptcy car loan is a possibility.

After the declaration of an individual as a bankrupt, it becomes imperative for the person to write the reasons for his filing bankruptcy in his consumer report. It might be due to huge medical expenses or illness that has robbed him off his work, so knowing the reason by the lender often helps in getting a car loan after bankruptcy. To make the various lenders aware of it, you need to attach your consumer statement with your credit report. Often the pre bankruptcy credit report is also a good base to judge on the credibility of repayment status of the individual.

To get a good deal on financing car loan following bankruptcy is challenging. First, one must rebuild his credit rating by being more responsible and practicing a healthy credit repayment. Although it would not change your credit rating overnight but it allows for a bankruptcy car loan. However the darker side of bankruptcy is quickly recovered if practiced with good intentions.

To get a car loan after bankruptcy is co-signer or collateral a mandatory requirement? This is the question that requires satisfactory explanation for a better understanding. Often getting a car loan after bankruptcy result in paying a higher interest rate. So often the signature of a co-signer with a good financial history helps in getting a softer rate on the loan. It is the financial status of the co-signer that is looked upon. Second, often the car is kept as collateral for the loan with softer interest than without it. On the occasion of default, if the lender chooses to foreclose he will sell of the car. The difference between the auctioned price and the loan amount is to be given by the borrower. So neither the co-signer nor collateral is a requirement for financing auto loan after bankruptcy.

However it is advisable to wait for at least 6 months after discharge to apply for an auto loan. This will give enough time to systematically improve the credit rating. Applying loan, immediately following bankruptcy may end up paying a very high interest amount.

Again, if you cannot wait for six months then save enough to give a higher down payment. This will help to get a loan at a softer rate and the monthly installment will also come down. As a result you would be able to build back your credit history.

Last but not the least is if you want to improve your credit history by financing a car, then do it for a smaller amount. So even when you are paying high interest rate the repayment is affordable. Another way is if you can let know your dealer on the monthly amount that you can pay for so that you do not default or miss out on repayment.