Would you like to get approved for a car loan after bankruptcy?  Are you concerned that bad credit will prevent you from qualifying?  Fortunately, there are car loan programs available to help people with bad credit.  If you’ve filed for bankruptcy, you can immediately apply for a car loan once your bankruptcy closes.  Of course, you will probably get a higher-than-normal interest rate (due to your past bankruptcy and/or bad credit).  However, as your credit score improves over time, you can always return to the lender and negotiate a lower interest rate.

Before you visit a car dealer for a car loan, be sure to review your credit report.  Make sure that all accounts that were included in your bankruptcy are showing as closed.  Check to see if there are any errors.  It’s common after a bankruptcy to see open accounts that should be closed.  If certain accounts are being inaccurately reported to the credit bureaus, it may be hurting your credit score.  Large errors on your credit report can prevent you from qualifying for a car loan.

After you’ve determined that your credit report is free of errors, review your budget and determine how much you can spend on a car.  Consider both the term of the loan (how long you will be making payments) and the total loan amount.  When you visit the car dealer and apply for financing, you will probably be asked about any past bankruptcies.  Be honest and explain why you filed for bankruptcy – and the steps you’ve taken to improve your finances.  Be sure to mention any improvements to your credit score.

For the best interest rate, consider using an online car loan lender.  Online lenders work with thousands of loans and can usually give you a better deal than a local car dealership can.  Once you are approved with an online car loan lender, they will send you a check for the total car purchase amount.  You will take this check with you when you visit local dealerships to shop for cars.  This check proves to the local dealerships that you have already been approved for a car loan.  Using these tips, you should be able to get approved for a car loan even with bad credit or a past bankruptcy.