Can I get a car loan if I’ve previously been declared bankrupt?

By Angela Monroe - June 6, 2018

Dealing with bankruptcy is an especially difficult time. With bankruptcy, you face a severe financial crisis, and your credit rating takes a huge hit. Not only does a bankruptcy hinder your plans of growing wealth, but it also limits you from starting over financially.

There is no chance to obtain a car loan while you’re bankrupt. However, once you’ve been discharged from bankruptcy, you can look into certain credit options. While big lenders and banks won’t offer you a loan, certain non-conforming lenders may offer you a car loan after bankruptcy.

If you’ve been declared bankrupt in the past, but you’re currently discharged, you can still obtain a car loan. By seeking the help of a professional car finance broker, you can understand how to best approach lenders for a loan.

Let’s first take a look at what a discharged bankruptcy is, before moving on to how you can obtain a car loan after bankruptcy.

What exactly is discharged bankruptcy?

When you have been declared bankrupt, your bankruptcy will generally last for three years. After this period, you will be discharged from bankruptcy. Even after you have been discharged from bankruptcy, the financial consequences of being declared bankrupt in the past will remain with you for a while.

To put it in simple terms, after a discharged bankruptcy you can start accessing certain credit options once again. For instance, it will be possible for you to obtain credit for a car loan or home loan. However, it will certainly be difficult.

It is also important to note that being declared bankrupt will remain in your credit history for 5-7 years. Even after this period, your name will be recorded for life in the National Personal Insolvency Index.

How to improve your chances of a car loan approval?

If you have been discharged after a bankruptcy, you’ll have a difficult time obtaining a car loan. This is because lenders will see that you have been declared bankrupt and take this an indication of poor financial management.

However, there are certain steps you can take to improve your chances of getting a car loan approved. While it won’t be possible to scrub out a bankruptcy completely, you should look to improve your credit situation by:

  • Reducing your existing debts
  • Saving some money for a car loan deposit
  • Paying your bills on time
  • Maintaining a stable home and employment address
  • Finding a co-signer

How to find the best loan

Finding the best car loan after bankruptcy is certainly a challenge. Even if you do manage to find lenders willing to offer you a loan, there are certain traps you need to avoid. Make sure not to accept the first offer that comes your way – you may find a better deal elsewhere. Also, certain lenders are notorious for sliding bad terms and conditions into a loan agreement. Never accept a loan offer without going through the terms and conditions carefully.

To ensure that you find the best car loan after a bankruptcy, you should seek the advice of a specialist bad credit loan broker. Professional brokers can help you approach the right car loan lender and will also offer you valuable advice on how to secure a loan.

Loans for People with Bad Credit specialises in helping people like you obtain a car loan. Our team of consultants goes above and beyond what most brokers do. We carefully understand our clients’ financial situation and offer our expert advice on what to do. We also have access to several genuine lenders in the market who offer bad credit car loans.

How we can help you get a car loan

At Loans for People with Bad Credit, we have a proven track record of helping people secure a car loan after a discharged bankruptcy. Anna’s story is a very relevant example:

Anna Smith is a single mother in her late thirties. Due to a previous discharged bankruptcy, Anna was finding it difficult to secure a car loan. Over the years, she had improved her financial situation significantly, but she was still not able to get a loan.

That’s when Anna approached us at Loans for People with Bad Credit. Thanks to our expertise, she was able to secure a car loan quite easily.

We could help Anna secure a car loan because our consultants proved to lenders that she was financially responsible, despite her past bankruptcy. We did this by:

  • Proving that her financial situation was stable
  • Showing her long-term employment
  • Providing novated lease statements that demonstrated good credit
  • Proving that her current earning potential was more important than her past credit history

Anna’s story is just one out of many people who have managed to obtain a car loan after being declared bankrupt. Even you can improve your chances of obtaining a car loan by approaching us.

Finance for discharged bankruptcy will set your course

A discharged bankruptcy shouldn’t stop you from leading life to the fullest. You should look to explore your credit options and catapult your way back into building a financial future.

Loans for People with Bad Credit can help you obtain a car loan after a discharged bankruptcy. We’re bad credit specialists, and our consultants will help you find the right car loan for your needs.

Get in touch with us to find out more about your credit options after a discharged bankruptcy!

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.

Comments

No comments yet.

Leave a comment.