Monday, April 30, 2012

Post Bankruptcy Time Periods For Auto Loans

Because of the national economy many businesses and individuals are still not capable of operating without some sort of governmental financial assistance. So, the number of folks with poor credit or bankruptcies seeking auto loans are surging like a tsunami. And many lenders have stepped in to fill that need. Time periods for auto loans may mean something to traditional lenders, but not online lenders.

Time Periods after Bankruptcy for Auto Loans

Many folks think that after successfully filing bankruptcy, that they must wait any number of years before applying for any sort of loan, especially a car finance loan. This is not often the case. Because of the number of people who have had to abandon a life fueled by credit cards and other financial debt, many prospective lenders have stepped in to fill the gap. Even bankrupt folks need transportation.

Two to Three Years Could Help

Post-bankruptcy borrowers may be helped by waiting a few years before attempting to land a car loan. During that time they may have to drive around in a clunker, but that will give them a chance to start giving new life to their credit history. Many take out small loans, put the cash in a bank account, and then have automatic payments made to the loan from that account. A number of little loans done this way can sincerely help your credit standing. Meanwhile, cool your need for a spiffy car.

Not an Option

If you rely heavily on a car to get to work or take care of other responsibilities, not having a means of dependable transportation could be a big detriment. So, don't worry about bankruptcy time periods to apply for an auto loan. As noted above, there are plenty of lenders out there to help you finance a vehicle without time periods elapsing.

Go Online

Time periods not withstanding your search for a car loan, your best bet would be to go online. Traditional brick and mortar financial institutions may not be interested in lending to you, but there are those who will. Just understand that with a bankruptcy or a poor credit credit history, you will end up paying higher than usual interest rates. But since so many Americans are having credit problems, and since so many need relief, what with new lenders stepping in to alleviate this problem, you are apt to find a deal that is as good or better than those offered to folks with good credit. So, start shopping.

No Time Periods before Applying

Non-traditional lenders are not too concerned if you had a bankruptcy yesterday or three years ago. The lower your credit scores and the sooner you apply after bankruptcy, will certainly effect the interest rates you are offered. About the only thing you will need is a government I.D., a proof of residency, a proof of salary and time on the job, a social security number and proof of bank accounts

Time Lapses Are Not Necessary for a Bankruptcy Auto Loan

Do not be fooled. A bankruptcy or other credit problems can be very hard on a credit report. That does not necessarily mean you cannot land a bankruptcy car loan. You may have to step back and not look to owning a dream car right after bankruptcy, but given a decent income and other indications of stability, landing a car loan should not be that big of deal. You do not have to wait forever to do it, you do not need to wait a time period after a bankruptcy to get a bankruptcy auto loan.

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