Bad Credit Auto Loans

Unexpected things happen from time to time. Maybe you had an expected hospital visit, have been involved in a car accident, had a major appliance at home break, or a different costly bill. Unfortunately, situations like these could lead to a low credit score. Thankfully, many lenders understand that you still need a vehicle to go to work, school, or the grocery stores. That’s why bad credit auto loans are available to those with challenged credit that need a reliable ride.

Can I Get a Car Loan After I Declare Bankruptcy or Have My Car Repossessed?

Having to declare bankruptcy or having a car repossessed are tough situations for anyone to experience. Luckily, it’s likely still possible to get a car loan, even if the bankruptcy or repossession was fairly recent. Here are a few things you should do to prepare your application for a bad credit car loan after going bankrupt or having your car repossessed.

Review your credit report. It won’t feel great to see a low credit score number, but it’s important to see what the lender will see. Think of ways you can improve it until you are ready to apply for your car loan. In the meantime, continue paying your bills on time.
Save money in advance for a down payment. Down payments are typically required for bad credit car loans and it’s important that you get a head start on this. The larger the down payment, the better. Also, consider trading in your current vehicle to bring down the principal of the loan further.
Get pre-qualified before shopping. Although you may want to start browsing vehicles now, you need to know how much money you qualify for ahead of time.