|
Home / Business / Financing / Loans
Car Loan After Bankruptcy: Qualifying & Saving Money
By:R. Lawrence Anderson
If you are planning to apply for a car loan after bankruptcy, there are two key items you need to focus on:
1) Increasing your chances of qualifying for a car loan after bankruptcy
2) Reducing the interest rate on the car loan after bankruptcy
Let's look at each item in more detail:
1) Increasing your chances of qualifying for a car loan after bankruptcy
One way to increase your chances of qualifying for a car loan after bankruptcy is to increase your credit score.
How do you increase your credit score? One way is to update your credit reports. This means removing any inaccurate or obsolete negative information from your credit reports. This will take an investment of time on your part - but if it means the difference between qualifying (or not) for a car loan after bankruptcy it can be worth the effort.
Another way to increase your credit score is to add positive items to your credit report - but few people know about this technique. There's not enough room to go into it here, so I'll save that for another article.
In After Bankruptcy Credit Solutions I go into detail on a number of ways you can increase your credit score. While there isn't enough room to cover all of them here, or any of them in detail, hopefully this gives you an idea of some of the steps you can take.
Another way to increase your chance of qualifying for a car loan after bankruptcy is to increase the amount of your down payment, or look at a lower price car.
For example, let's assume you have $1,600 for a down payment on a car and you're looking at a $16,000 car - that's a 10% down payment. But what if the lender won't approve the loan because the down payment isn't large enough? See what they can do if you consider an $8,000 car. Now your $1,600 represents a 20% down payment. In addition, everyting else being equal, the payment on your car loan after bankruptcy would be lower if you finance it for the same period of time.
Next, let's discuss some ways you can reduce the interest rate on a car loan after bankruptcy...
2) Reduce the interest rate on the car loan after bankruptcy
Here's where increasing your credit score pays off again! Why? if you are able to increase your credit score enough to reduce the interest rate you pay on a car loan after bankruptcy, you could save $100s or even $1,000s of dollars.
For example, let's use a $15,000 car loan after bankruptcy as an example. Let's say you increase your credit score enough so that you receive an interest rate of 11% instead of 14%. Over the life of the loan you will end up saving about $1,067 in interest - that's money that stays in your pocket!
There are other ways to lower the interest rate on a car loan after bankruptcy - increasing your credit score is just one of them. For example, there's another technique you can use to reduce the interest rate you pay on a car loan after bankruptcy - and it can save you up to $100s of dollars (or more). There's not enough room to cover it here, but it's a powerful technique if you don't have time to increase your credit score, and need to finance a car immediately. I go into detail on it in After Bankruptcy Credit Solutions.
Now you know some specific techniques you can use to increase your chances of qualifying for a car loan after bankruptcy, as well as potentially reducing the interest rate you pay in the process!
Copyright (c) 2006 Innovative Solutions Publishing, Inc. All rights reserved.
DISCLAIMER:
This information is designed to provide only a general overview of the subject matter herein.
This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.
Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article keywords: car loan after bankruptcy, car after bankruptcy, auto loan after bankruptcy, bankruptcy loan
Article Source: http://www.articles2k.com
R. Lawrence Anderson is author of After Bankruptcy Credit Solutions, which shows individuals how to qualify for credit and loans after bankruptcy. For details visit: www.bankruptcy-credit-solutions.com
|
|
| Top Loans Articles |
- 1). Personal Loans Fulfilling The Personal Desires By : James Taylor
Success is one thing that everyone craves for after all that is the only thing that every one wants but not all can get. Success has different meanings for different persons for most people it is the fulfillment of their desires. Because everyone has desires everyone wants to accomplish something in our lives we do not have enough resources to achieve what we want to achieve.
|
- 2). Loans Are Lenders Cheating On APR’s? By : Michael Challiner
A pound from one lender is as good as a pound from another. So when you're shopping for a loan, the key issue becomes the interest rate. Consequently, when you read press advertisements and visit web sites, the Annual Percentage Rate of interest (APR) highly influences which lenders or loan brokers you apply to. After all, the government introduced APR's as a standard calculation that every lender has to use, precisely to help the public make reliable comparisons.
|
- 3). Student Loans 101 By : Natalie Aranda
Student loans are a helpful accessory when you need to cover costs when deciding to further your education, including housing and tuition. Student loans are there to be financial lifesavers when grants or scholarships leave your school funding a little short. There are federal loans available as well as private student loans that will help with the financial overload.
|
- 4). College Financial Aid: Unraveling The Myths By : Leon Chaddock
Entering college is a big deal both emotionally and monetarily. Everyone should have the opportunity to get the education they deserve and to help in that process, you can look for college financial aid. This is money that is provided to you in one or another fashion so that you can get the loans that you need to pay for school. There are several set ups that can help you.
|
- 5). How To Stretch Your Student Loan By : Rachel Lane
If you’re considering going to university, there is a strong chance that you’re also contemplating taking out a student loan to fund your university expenses. Student loans don’t have to equate to student debt and if you plan your finances, it is possible to get by without student loans and possibly even profit from them. There are many sites on the internet which provide downloadable student finance guides and online advice on how best to manage your finances.
|
- 6). Regain Your Finances With Low Rate Unsecured Loans By : Loans UK
Life is unpredictable. Crisis can occur at anytime. You may then need money urgently. You have accessed all your resources but are still unable to get the desired amount. What would you do then? I witnessed a similar situation. Once when I faced a financial disaster, I decided to take a loan. The excessive rate of interest charged on the loan troubled me.
|
|
|
- 8). Finance Your Car With Poor Credit By :
Cars don't look at your credit before they decide to breakdown. Anyone, with poor credit or great credit, could find themselves in a situation where they need an auto loan. Fortunately, those with poor credit do have options available for financing their vehicles.
"Bad Credit Car Loans"
One of the most common methods of purchasing a car with poor credit is with a "bad credit car loan".
|
- 9). Quick Payday Loans - Why Get A Same Day Cash Advance By : L. Sampson
Everyone has experienced a time in their lives when they needed a little help to make it to payday. Emergencies arise all the time bringing with them unexpected expenses; the car breaks down, your dog needs to go to the vet, or a window gets broken during the coldest week of the year. When this sort of thing happens, there are often few options for getting cash quick.
|
- 10). Should We Be Aware Of Pay Day Loans? By : Dr. Drew Henry
Customers at the grocery store all recommend pay day loans as the easy solution for a lack of funds. Could pay day loans be the answer consumers with low bank accounts have been looking for? Is there any harm in using these services? Aren't they better than using credit cards?
Paying a bill with borrowed money is better than receiving bad credit marks because of not paying the bill.
|
|
|
