When you go bankrupt, your credit reputation is destroyed. You are disfranchised and treated like a financial leper. Been able to get auto loans after been bankrupt is quite a herculean task because bankruptcy martyrs your credit reputation.
Getting approval for an auto loan is one of the ways by which you can rebuild you credit score and report after bankruptcy. The problem with auto loans after bankruptcy is been able to get a loan. If you were someone who has gone bankrupt in the past, getting approval for an auto loan would definitely be difficult because most loaners consider granting you a loan to be a high-risk investment.
Applying for auto loans after bankruptcy attracts higher interest rates and stiffer repayment plan. Your application is usually refused if you do not have a stable and reliable source of income. Apart from your application been refused for lack of a stable job, as an individual who was formerly bankrupt, your application can also be rejected ifÂ it do not have a co-signer to sign and stand surety for you. as a practice, most loaners usually require that you should produce a co-signer whom they can hold responsible shouldÂ you default in repaymentÂ or fail to pay them back the auto loans that you have been given.
There is a great difference between been bankrupt and having a bad credit report. Having a bad credit report is what leads to bankruptcy. When you have a bad credit score, becoming or going bankrupt becomes inevitable. After bankruptcy, before applying for auto loans, it is advisable that you should seek counseling from a credit counselor. In addition to undergoing counseling, I would also advice that you should apply for an auto loan through an auto loan broker, this can help in ensuring that your loan gets the speedy approval that you want.