Car Loan for Bankrupt
Filing for a bankruptcy is a bad scenario in life but, this does not necessarily close all the doors of availing loans from banks. Though you will have a tough t in getting a loan from the bank after filing for a bankruptcy, fetching one is not impossible. The lenders fail to approve a car loan after bankruptcy because there is a high risk of defaulting the loan. If you can convince the lender that there is low risk involved in approving the auto finance, it is less likely for your auto loan to face a rejection from the lender. You will be surprised to know methods that can provide assurance to the lender about the repayment of the car loans.
Borrow credit score
Borrowing credit score ?? what does this mean? It is nothing complex. You should have a co-signer for the auto loan application. This will lower the risk of defaulting auto finance and there are high chances of the loan approval. Having a co- singer means you are just borrowing their credit score to fetch a loan. Standing prompt in the repayment of the auto finance can be a stepping stone for recovering bankruptcy.
Lenders leap towards the secured loan over unsecured loans because they hold the right to seize the property in case you default the loan. In most of the cases, auto loans are secured by the car itself. If you are bankrupt, pledging other assets as collateral will improve the chances of loan approval.
Large down payment
Large down payment is another decent option for the people who are bankrupt to fetch a car loan. It, in fact, acts as a sign of goodwill to the lender. If you are willing to offer large down payment for the auto loan, more lenders will be willing to work with you to offer the loan at attractive interest rates. You can even choose to go with large monthly EMIs to show the lender that are ready to repay the loan with the cash available now.
Reasons for bankruptcy
No one would want to file a bankruptcy without any reason. You can improve the chances of loan approval by explaining the lender the reason behind filing bankruptcy. You might have filed it to address some mandate expenses of life like a medical emergency. This is just to let the lender know that there is no risk of defaulting the loan in future.
Proof of Income
Before you approach the lender to apply for the loan, ask your employer to provide proof with your income to submit it to the lender. In most of the cases, pay slip will serve the purpose. This is just to assure the lender that you have a stable income. The chances of the loan approval will be more when you are employed with the same company for the past two years.