Bankruptcy Car Loans

Bankruptcy car loans can be had, and can be part of a plan to build up your history for the future.

You can use the financing department at the dealership, but as a general rule I am against it. Dealerships are known to typically have the highest interest rates of all your options. If you do decide to go with them, ask to see their special financing department and be upfront about your history, they will see it in your credit check any how. Have a one to two sentence explanation prepared for what caused you to declare bankruptcy.

If you are going elsewhere, as I hope you do, you'll want to find a number of places and compare rates. I usually recommend looking at rates and terms at five companies. If you are a member of a credit union you will want to check there, they are known for having low rates. Other places to look are your bank and online lenders. What's great about looking online for bankruptcy car loans is the ease with which you can compare rates. You can look at five companies online in the amount of time it takes to check out one in person. Look at their rates, read over their terms, and look for some reviews of the company and check that they are approved by the Better Business Bureau before you sign anything. If you just recently discharged your debts then your rates will definitely be very high. If you have been improving your credit for the past two years with secured credit cards and a different loan, then you will have better rates. Either way, if you make your payments on time every month after you secure financing this experience will both help you get some new wheels, and improve your credit score.

While you won't have the best rates and will have to look harder to find the right deal, bankruptcy car loans can be one more step toward a brighter financial future.