Getting a car loan online is a great way to get your credit back in shape after bankruptcy, and finding a lender is not as hard as you might think either. Most post bankruptcy borrowers that apply online once their bankruptcies are discharged are easily approved for automobile loans.

Dress Up Your Credit Report First

While most applications for online automobile loans post bankruptcy are approved, you might want to dress your credit report up a bit before you apply. One way to do that is to add a page of comments to the report that explains in detail any extenuating circumstances that led you to file your bankruptcy proceeding. You can do this easily by contacting the three credit bureaus who are obliged to note this information if you provide them with it.

Another way to add some zest to your bankruptcy damaged credit file is to obtain a secured credit card. These types of cards are readily available for all bad credit borrowers. To obtain a secured credit card, you will place a deposit with the credit card issuer that is equal to the amount of credit you wish to b extended to you.

You can use the credit card in the same way that you would use any other card. To use your secured credit card to your advantage, you should never use more than one-third of the amount of your available credit at one time, and run just a small balance each month. This can help add fast points to your score as some companies that offer these types of cards actually report monthly to the bureaus.

Determine An Affordable Payment

Next, prepare a budget that will help you determine how much you can afford in terms of your new automobile payment. Decide how long you want to be paying for your new vehicle. The total price of the vehicle you select as well as the number of months you plan to take to repay the loan will determine your monthly payments. The longer it takes to pay back the loan, the less your monthly payments will be, and vice versa.

Never agree to payment terms that you can not easily fit into your budget. This will only be even more detrimental to your credit file because it increases the likelihood that you will skip payments or default on the loan – getting you right back in the same situation you were in before.

Go Shopping

Once you have decided on how much to borrow, or found the car, truck, or SUV that you wish to purchase, you are ready to apply for your automobile loan. You can do so by visiting your online lender and filling out an application which will be submitted over a secure server. In most cases, you can receive your money in as little as twenty-four hours, either sent directly to you or to the automobile dealer that you choose to make your purchase with.

Once you have your money in hand, you are free to negotiate. Dealers often give discounts for cash payments made upfront, which eliminates the need for them to find financing for you. Remember to always make timely payments on your new post bankruptcy automobile loan, which will add valuable points to your FICO score.

Author Bio: Devora Witts is a Bad Credit Loan consultant and has more than thirty years of experience in finances. She has helped a lot of people to obtain Bankruptcy Loans, home loans, car loans, personal loans and many other products regardless of their credit situation. Learn more about Personal Loans at http://www.badcreditloanservices.com

Category: Finances
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