The Post Bankruptcy Car Loan Process
An experienced auto loan broker will be able to shop your proposed loan to more lenders in a shorter amount of time. If your broker has a long history of brokering auto loans, they will have established relationships with many loan companies. Even when using a loan broker, it is still imperative that the consumer do their own comparison shopping and review any offers made by the broker for excessive fees as well as interest rates.
Most all car loan processors or lenders have an online application that will make the loan application process much quicker. Although copies of work history or banking statements may be needed at a later date, the initial process will most likely only require that you give the loan broker permission to access your credit and to verify any other pertinent information. It is always a good idea to check your own credit record before applying for a loan to verify that the information that it contains is correct. Make certain that all credit lines that were involved in the bankruptcy filing are marked as discharged. It is also important to double check your positive credit lines to verify that they are reporting correctly.
While it is always important to read contracts carefully before signing them, it is possible to get an answer on an online auto loan application in as little as 20 minutes. While this approval does not bind you into a loan contract, it does get the ball rolling to what should be a relatively fast transaction. After you review and agree to the terms of the loan, the paperwork will be processed and prepared for signatures.
Once the loan is complete, you will be mailed a blank check and loan forms that will require your signature. The loan papers are returned to the lender and you then sign the check over to the person or company that you are purchasing the car from. This would complete the loan process and require you to start car payments within a matter of weeks.
Now that you are the proud owner of a new car, you should be able to re-finance your car after your credit improves. Bankruptcy will not keep you from buying a new car but it can affect the interest rate that you pay. By doing some research and shopping for the best rates, it can actually help to reestablish your credit with a positive credit line after repaying the loan on time for 3-4 months. The longer the loan payments remain marked on your credit report as being paid as agreed, the better for your credit score and long term credit health.
