Some Easy Tips For Chapter 7 Bankruptcy Car Loans
Press Release (ePRNews.com) - Gaithersburg, MD - May 15, 2017 - The word bankruptcy sends warning bells ringing in the minds of borrowers who think that filing for bankruptcy may mean the end of road for car financing. But this is far from truth and it is possible to get a car loan after chapter 7 or chapter 13 bankruptcies. You can choose to apply through your bank or credit union, although chances are you will likely be turned down as you are now a high risk borrower.
Most banks and credit unions do not like to deal in car financing for bad credit. Having said that, your bank may just offer you a loan considering you have been a loyal customer. In any case, it doesn’t hurt to check with your bank if they will be willing to accommodate your requirement.
To avail of chapter 7 bankruptcy car loans, it is better to contact private lenders or dealers who are more willing to look into the reasons for your bankruptcy and work around ways so you can get a loan that you are able to repay. There are many ‘buy here pay here’ or ‘buy here lease here’ options that lenders offer. It is unlikely that you will be able to get approved for a new car. So, you can select from the old vehicles and the financing will be worked out accordingly.
Remember the car loan interest rate after chapter 7 is significantly higher than the standard loans. So, your monthly repayments will also be higher. It is advisable to secure car financing for bad credit from your lender and then select a car that fits within the budget. This will not only help you ascertain the loan amount you are eligible for, but also give you a clear idea about the monthly repayment amount that you will be expected to pay. If you borrow an amount higher than what you are able to repay, you may fall into a vicious debt-trap.
On an average the car loan interest rate after chapter 7 are above 15%. So, it is better to look for a car that fits your budget. The internet has details of many lenders that offer chapter 7 bankruptcy car loans. Also, there are websites that have a network of lenders working together. When you apply at such a website, the lenders contact with the offers they have. You can compare the quotes and finalize the best deal.
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