Believe it or not, getting a car loan is one of the best steps in rebuilding your credit after bankruptcy. Once you are able to prove that you can pay your loan on time, your credit can slowly improve. However, you will have a hard time finding a car dealership that will give you a car loan. Most auto finance companies will hesitate to loan money to those who have recently filed for bankruptcy. They consider it a risk and will not likely approve a car loan. Instead, seek out a sub prime lender. Sub prime lenders are lenders who specialize in loaning money to those with bad credit. Sub prime lenders are a lifesaver for those who have filed for bankruptcy, had a mortgage foreclosure, or have had a car repossessed.
You can expect a high percentage rate on sub prime loans. This is the downside to having to go this route. Percentage rates on sub prime loans are generally more expensive, but they pay off in the long run. You need a way to rebuild your credit, and this is one way to do it. When you are ready to search for a car loan, look no further than the internet. The easiest way to get the best rate possible is to compare rates among different reputable sub prime lenders.
