“Are auto loans after bankruptcy with no money down possible?”
If this question has crossed your mind recently then the “easy” answer is yes…but before most lenders will even give you the time of day, there are some things to know, and some actions to take, in order to create the best possible scenario for you to get the best deal(s)—(interest rate and payment) available.
We’ll try to keep them brief, so your eyes don’t glaze over and you tune out!
• Make sure your credit report is error-free and there are no inactive, open accounts. These can harm your credit rating, and ultimately affect [raising] your interest rate once loan time comes around.
• Build your credit over time by maintaining a consistent payment history through your bank, a furniture rent-to-own establishment, etc, to show your stability and sincerity to earn their trust.
• Stay gainfully employed within in the same line of work. Again, think ‘stability’ in the minds of lenders.
• PUT MONEY IN SAVINGS IF AT ALL POSSIBLE! If your bankruptcy has just begun, it’s best if you can put away 20% of your income each paycheck. This action, over a few years time, will not only show lenders an exhibition of self-discipline, financially speaking, but will also endear them to you more so, as you’ll have cash to put down, making you more invested in the loan. This action will also have a significant bearing on how good of an interest rate you can bargain for.
Even if you have no money down, but are taking the other actions above, you’ll stand a much better chance of not getting taken advantage of by the highest possible rate. Just know this: no-money-down auto loans after bankruptcy are going to be much harder to find, and your interest rate will undoubtedly be higher, as lenders are taking a much bigger risk on losing their investment, while you have little or nothing to lose.
