Auto Financing Bankruptcy - Is it Possible to Obtain Reasonable Auto Financing After Bankruptcy?

Obtaining good auto financing after bankruptcy can certainly be a challenge, as you will have the bankruptcy on your credit file, and therefore companies will be very hesitant to lend you money.

Fortunately, however, you do have options available to you other than just paying cash for everything. Here is some important information to help you get the money you need after filing.

To start out with, you need to realize that, as soon as your bankruptcy case has been eliminated, you can apply for a loan for your car. However, generally speaking, if you don't have any time at all, you will end up paying enormous interest rates, and it really doesn't pay off to get a loan immediately after bankruptcy.

If at all possible, you definitely should wait a minimum of 6 months, and even a year would be best before applying for auto financing after bankruptcy, as this will save you a lot of money in interest rates.

Obviously, waiting can be tough, particularly if you lost your car through bankruptcy; however, all is not lost. If you do have any available cash, simply pay for a cheap car with cash, and you should be set for at least the six month waiting period. If not, try to find public transportation to take.

The bottom line is, there are many ways you can avoid getting a loan within the immediate 6 months, and you should explore all the avenues available to you. If you wait 6 months for auto financing after bankruptcy, the rates you pay will be much more reasonable.

Generally speaking, if you apply for auto financing right after bankruptcy, you will be paying around 3 percent interest higher. This might not sound like a lot, but it can dramatically raise the amount of money you owe over the course of the loan, so again, if at all possible, you want to wait a little while before applying.

However, don't let this discourage you from applying. Remember, once you've applied for bankruptcy, this is certainly not the end of the world. Now, it's time to get a fresh start.

Starting to develop a reputation as somebody who pays off their bills reliably is very important, which is why you want to pay for as many things with credit as possible, which will enable you to achieve great auto financing bankruptcy rates when the time comes.