Having a cosigner can provide a lot of help to you when applying for an auto loan. This is especially true in a bad credit or no credit situation. But even if you have a cosigner you’ll stillbe required to meet the income requirements for the loan you are applying for.
Less than a year ago, I had a vehicle repossession, can I still pre-qualify for a loan?
The answer is maybe. If the repossession was NOT included in a bankruptcy, and there is still a balance on the account, you can probably still pre-qualify for a bad credit auto loan. Note that greater down payment requirements will most likely apply and your vehicle selection will probably be limited to newer cars that are still under factory warranty.
Is it possible to get pre-approved with a bankruptcy in my past? Probably. As long as the bankruptcy has been fully discharged, or the bankruptcy trustee has given you an “Authorization to Incur Debt” you can probably get pre-approval from an appropriate lender.
I’m currently in a Chapter 13 Bankruptcy… Will I still qualify? In many cases, the answer is yes. Note however, it may take longer to process your bad credit car loan because of the bankruptcy. In addition, you will have to obtain an “Authorization to Incur Debt” from the trustee of your bankruptcy which will typically take a week or two to get. Always consult your bankruptcy attorney on matters such as these, however.
