Car Loans After Bankruptcy Made Easier

Car loans after bankruptcy can be a little more difficult than your previous loan you may have applied for before your financial downfall. This does not mean that it is impossible to get a loan. Now there is good news for those looking for a new car after bankruptcy. Getting car loans after bankruptcy is more likely today for those who find themselves in these circumstances.

There are a few things that you can do to help you get the approval you need for a car loan. Let’s explore a few steps you can take to make car loans after bankruptcy easier.

Begin by double-checking your credit history reports. Pull your credit reports from Equifax, Transunion and Experian and go through them with a fine tooth comb to be sure that all debts that were to be removed in the bankruptcy are no longer on the reports. Sometimes, the bureaus can miss taking off a debt that has actually been discharged through your bankruptcy and this can lower your credit score more than it should.

You may want to draft up a letter to send to each of the three credit bureaus explaining the reasons for filing bankruptcy. If you had a setback due to a divorce, extreme medical bills or a temporary loss of job, this letter could give you a better chance at getting lower interest rates. Potential lenders will be able to read the explanation and may take this into consideration when deciding to grant you a car loan after bankruptcy. In addition, feel free to explain the steps you have taken to begin to rebuild your FICO score.

After reviewing your credit reports the next step would be to take a good hard look at your current finances. Evaluate the monthly payment you can realistically handle for a car loan along with all your other financial obligations. Don’t forget to allow for insurance and maintenance. Do your best to choose a car that will help you stay on track and make your monthly payments on time. Paying your car payment on or before the due date is the quickest way to rebuild your credit history.

Once you have successfully paid the car loan for a year, chances are good that you will have the opportunity to refinance with a lower interest rate. Make a note to yourself to recheck your credit score after the first year and begin to look for refinancing at that point. This could save you money over the balance of the car loan after bankruptcy.

And, finally research a car dealership or auto broker that has expertise in finding car loans after bankruptcy. Some dealerships and brokers have special finance departments. Because of the volume of special loans they secure, these experts can typically find you lower interest rates. And, this will make your monthly payments lower. With the lower monthly payments you will have a better chance to regain your financial borrowing power and improve your overall credit history.

Lending Tree Is A Good Alternative For Auto Loans

It can be hard to secure a loan in this increasingly shaky economic climate. This is particularly true in the case of auto loans. Most lenders, who are already reluctant to lend, are even more hesitant to provide financing for an asset that is guaranteed to depreciate. Even consumers with exceptionally good credit and a large down payment may be forced to apply at multiple places. One of the best alternatives to pounding the pavement in search of a loan is to go through Lending Tree. The online lending site helps match consumers with lenders, and helps borrowers get the best terms.

Lending Tree brokers just about every kind of loan, from mortgages to auto loans. It also handles refinancing, home equity loans, credit card applications and insurance quotes. The site’s largest potential market is its auto loans, because more American consumers have a car loan than a mortgage. Lending Tree has grown rapidly since it was founded in 1998. The idea behind the site is simple; a consumer applies for a loan and multiple lenders compete to provide the money. The consumer selects the loan with the best terms. Consumers with good credit get better terms, but even subprime borrowers may be able to get a good deal through Lending Tree.

Auto loans are one of Lending Tree’s most popular products. The site allows consumers to request financing for both new and used cars. Refinancing loans are also available. The loan period can be as little as two years or as long as five. The consumer gets to state a preference on the application. He or she can also choose to include a co-borrower, such as a spouse or other relative.

One of the advantages of Lending Tree is the relative anonymity it offers. The would-be borrower doesn’t have to sit in the lobby of the bank or dealership, nervously waiting for the answer. He or she fills out the application online and waits for the results. The application must include the borrower’s name, address, social security number, phone number, place of employment and income. Applicants must also give their email address and create a password. The desired vehicle, loan amount and preferred term must also be included. An applicant who has not decided on a vehicle can use the website’s tools to get dealer quotes or search used car listings.

After the application has been submitted, Lending Tree will pull the applicant’s credit report and turn the application over to its lending partners. Each lender reviews the application and decides whether or not to make an offer. An offer will include the amount the lender is willing to provide, the length of the loan, the interest rate, the required down payment and any fees or other terms. The consumer gets the offers by email. Each loan application may generate up to four offers.

Results vary and depend on the applicant’s creditworthiness, requested loan amount and other variables. At the moment, the average interest rate for a four-year auto loan on a new car is 4.26 percent, while the average rate for the same loan on a used car is 4.91 percent. A borrower with stellar credit may get a loan for as little as 2.5 percent, while one with poor or no credit may have to pay as much as 16 percent – assuming he or she can obtain financing. Lending Tree does not guarantee positive results.

Once all the offers have been made, the applicant reviews them and chooses which to accept. There is a handy guide to comparing auto loans on the Lending Tree website. He or she can then fill out the paperwork and close the loan. Most lenders offer both electronic and paper billing for their auto loans. This quick and easy process is probably the easiest way for consumers to get the best loan.

Buying Cars – What, Where And How Of Availing Auto Loans

Many individuals send e-mails and mailers to inquire about the best way of buying a car through car buying services. The questions also include other issues such as how to find proper auto insurance, how to avail car loans, and how to avail best car loan rates. Some individuals desire to buy a cheap car to drive around and later sell it, while others want to buy a brand new car and keep it on permanent basis. We hope you find it useful.

Places to buy a car:-

New cars are generally sold by factory-authorized dealers that specialize in certain brands of cars through car finance facilities. In certain cities, big car marts offer a wide range of selection in terms of different brands of cars under a single roof, and these places offer good car finance loans. Some internet companies boast in offering the best possible price for your new car through their car loan programs. All new cars will have a summary note attached with the vehicle listing all the features and options offered by the particular model. It’s important to note that the price is usually negotiable, and that majority of the buyers always pay a lesser amount than the window sticker price. Used cars are also available from new car dealers, and from independent used car lots as well as private individuals. These places provide attractive car loan rates. Used car lots offer older vehicles at attractive prices with a limited warranty attached to the price tag.

How to find your car?

Newspapers always display advertisements for new as well as used cars offered for sale by the dealers, used car lots, and individuals wanting to dispose off their existing vehicles. The Sunday edition generally advertises the biggest selection. Many internet sites also list cars and their models for sale in various parts of the USA. In addition, car magazines present attractive adverts for used auto finance having low car loan interest rates.

Buying your car:-

The registration laws of motor vehicles keep on varying from state to state. However, most states require the owner of a motor vehicle to possess a car title or certificate stating the ownership registration with the state motor vehicle bureau. While buying your car, the seller needs to produce the car ownership papers. Generally, the buyer as well as the seller has to appear before a motor vehicle registration representative to make the sale official by signing the related papers. The state transport bureau later records the information. At the time of buying the car, whether through car loans or auto loans, the buyer is required to pay a registration fee and any sales tax for the purchase. The registration officials are available at all automobile club offices. It is not advisable to buy a car when someone offers to sell it without proper papers. Chances are you could be purchasing a stolen car.