Have you recently been discharged from a bankruptcy? Are you looking for a car loan? If you think every lender in town figures you’re “untouchable,” think again. Although you are quite limited, there are car finance options for people discharged from a bankruptcy.
I’ve not yet been discharged from my bankruptcy. Can I apply for a car loan?
No. Car financiers, both who deal in mainstream and bad credit car loans will not lend to people currently under the terms of their bankruptcy. The only option for you is to wait until after your bankruptcy has been discharged.
I just got discharged from a bankruptcy. Does that mean I can apply for a car loan?
Yes. At Bad Credit Car Loans we have financiers that are prepared to extend credit 1 day after bankruptcy. They will however need assurances that the discharged bankrupt has been making a renewed effort to have good credit. This means you have not ran into bad credit since your bankruptcy, and not had any overdrafts or irregular finance history in that period. It also helps if you have kept up regular employment and have a solid residential history.
What kind of loans can I apply for if I’ve ticked off all those boxes?
Generally a discharged bankrupt, even if they have been discharged for over twelve months and did not blemish their credit history again, will only be offered “bad credit” or sub-prime interest rates. These typically start at 12% p.a. Your chosen car loan lender may insist on a trade-in or cash deposit to reduce the risk involved lending to a discharged bankrupt however that very rarely occurs.
Should I apply for other loans and pay them back quickly to build up a good credit history?
It is not advisable to take out “pay day” or short-term loans just to “test the waters” to pay them back immediately. These loans attract extremely high interest rates and run counter to your long-term objective of establishing a favourable credit history. Car loan financiers may reject your application as it raises questions of whether you can manage repayments on a car loan if constantly appear to be short of funds, even if the intentions behind the loans are noble.
To get yourself in the best position for an approval the aim is to have solid employment and residential history. .
I think I’m ready. What should I do next?
You should contact a financial professional who will guide you through the steps of applying for finance as a recently discharged bankrupt. The team at Bad Credit Car Loans know all there is to know about bad credit car finance for discharged bankrupts and can find you a product with the most favourable terms. Contact us today on 1300 974 066.