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Loan After Bankruptcy Steps to Take Before You Apply

Loan After Bankruptcy: Steps to Take Before You Apply

When it comes to a loan after bankruptcy, here are some steps you can take before applying which could increase your chances of qualifying.

First, work on increasing your credit score. This is very important, because most lenders will review your credit report when deciding whether or not to extend you a loan after bankruptcy. This is true whether you are talking about a car loan after bankruptcy, a conventional home loan after bankruptcy, or a personal loan after bankruptcy.

So how do you increase your credit score? There are a number of ways. One is by removing any inaccurate or obsolete negative information from your credit reports. Another way is to open some new accounts and pay them in a timely manner over time. There are more ways to increase your credit score, but I don't have enough space to cover them here.

Second, you will need to know which lenders to approach when it comes to applying for a loan after bankruptcy. For example, if you apply for with a lender that doesn't accept applicants that have a recent bankruptcy on their credit report then you never had a chance to begin with.

So how do you know which lender to approach? Ask questions. This is critical when applying for a loan after bankruptcy. What kind of questions should you ask? While there are several, let me give you two as an example:

1) Do you consider applicants who have a bankruptcy on their credit report?

The lender will probably want to know how old the bankruptcy is, whether it was discharged or dismissed, etc.. You will want to have that information available should the lender consider extending you a loan after bankruptcy.

2) What are your qualification guidelines?

Most lenders have a minimum criteria that applicants must meet in order to qualify for a loan. For example, if you apply for a home loan after bankruptcy, the lender will probably require a minimum credit score, a minimum debt to income ratio, etc. in order to qualify for the loan. You need to find out what the lenders' minimum criteria is before you apply for a loan after bankruptcy.

Finally, after you've increased your credit score and found a lender who will consider your application for a loan after bankruptcy you will need to negotiate the terms such as the interest rate, finance

charges, down payment, etc.

This is where a lot of people get taken advantage of when it comes to getting a loan after bankruptcy. Some lenders will act like they are doing you a "favor" and tack a pile of interest on top of the loan - and add extra finance charges. Depending on what you're financing, this can add $100s or even $1,000s to your loan after bankruptcy. In After Bankruptcy Credit Solutions, I cover specific strategies you can use to stop lenders who try to take advantage of your situation.

Now you know some specific steps you can take before applying for a loan after bankruptcy which could help increase your chances of qualifying - as well as what to watch out for once you've found a lender who will extend you a loan after bankruptcy.

Low Interest Rate Used Car Loan Getting A Low Rate Auto Loan

Low Interest Rate Used Car Loan - Getting A Low Rate Auto Loan

If you are in the market for a used car loan, be prepared to negotiate a good deal. Initially, car salesmen try and convince prospective buyers to agree to a huge sales price and interest rate. Of course, this maneuver does not serve to your advantage. Instead, it boosts the dealerships profit margin. If you have good credit, you are in a position to negotiate a better deal. However, if you have a low credit score, here are a few tips to help you obtain a low rate auto loan.

Boost Credit Score and Rating

Before offering a low rate for a used auto loan, the dealership or financial institution will review your credit report. Credit reports indicate our credit worthiness. If you have several past due or missed payments, lenders will consider you a terrible applicant. If you are approved for credit, the lender will not offer you a low rate.

Improving your credit is the best option for getting a low rate used car loan. Although lenders will approve an applicant with bad credit, the fees, rate, and terms are awful. To avoid paying higher fees, delay the car buying process for at least six months to a year. Take this time to boost your credit score.

To begin, review your personal credit report. If you have past due or unpaid accounts, contact the creditors and schedule payment arrangements. Plan to reduce your debt to income ratio. Furthermore, pay all your creditors on time, and never skip payments.

Get a Co-signer or Down Payment

If you have bad credit, having a co-signer is a great way to get a better rate on your used car loan. To qualify for low rates, your co-debtor must have a good credit rating. Having a co-signer with good credit puts lenders at ease. If you are unable to repay the loan, the person who co-signs for the loan becomes responsible for the payments. Moreover, if you have good or bad credit, saving money for a down payment will help get you a low rate.

Get Auto Loan Quotes from Various Lenders

Instead of securing your auto loan financing through a used car dealerships, shop around for your own financing. If you have good credit, your current bank or credit union may offer you great rates. Individuals with bad credit may obtain better rates through a sub prime lender or auto loan broker.

Getting quotes from lenders is simple. Many lenders have online applications. Furthermore, several auto loan brokers operate online. Simply complete an application and get pre-approved for an auto loan. If using a broker, you are able to obtain multiple quotes from at least three or four different lenders. After reviewing quotes, choose the best loan deal.