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How To Get A Car Loan With A Bankruptcy

Written By Finance on Thursday, November 24, 2011 | 12:45 PM

The need for after bankruptcy car loans is greater now than ever. With today's economy and the current job market, for many a bankruptcy is the only way to get out from under too much debt. However, this sometimes can mean losing your car through the bankruptcy process.

If you are someone that has found yourself in this situation, the following steps to get pre-approved for after bankruptcy car loans could be key to getting your feet back on the ground as well as a new vehicle.

Check Your Credit Reports

Obtain a copy of each of your credit reports through Experian, Transunion and Equifax. Read through these carefully to be sure that all debts that were discharged through the bankruptcy have been removed. Unfortunately sometimes the credit bureaus will inadvertently forget to delete some things that should no longer be on there. Doing this could help raise your credit score.

In addition, write up a document stating the reasons for filing the bankruptcy. Send a copy of this letter to each of the credit bureaus and ask that they attach it to your credit report. This may help when you go to apply for after bankruptcy car loans.

Examine Your Monthly Budget

Gather all your monthly bills including your rent or mortgage, electric, cable, and cell phone bill. Write these all down on paper and don't forget your monthly grocery bills as well as personal care expenses such as clothing.

Next, it is a good idea to jot down your monthly income in a column next to your expenses. Compare these two to determine how much you can afford for a car payment. Being prepared with this amount will ensure that you are able to repay the loan each month and begin the journey of repairing your credit history.

Gather Some Paperwork The Dealer Will Need For Pre-Approval

There will be certain items you will need to present to the dealer so they can get pre-approval for after bankruptcy car loans. These items are as follows:

* Valid driver's license for identification purposes.
* Proof of insurance - this can be a copy of your current insurance card.
* Proof of income - bring with you a couple of your latest paystubs.
* Proof of residency - bring a couple utility bills with your name and address on them.

Locate An Auto Broker or Dealer Who Offers Subprime Loans

Because not all auto brokers or dealers offer special financing for those after bankruptcy you will want to do a local online search for a dealership that does.

Contact the broker or dealer and briefly discuss your situation and ask if they feel they can help you find a vehicle. If you feel quite sure that this broker can help you set a time to meet with them to get pre-approved for after bankruptcy car loans.

By Mike Reitz

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