By [http://ezinearticles.com/?expert=Carrie_Reeder]Carrie Reeder Deciding whether to purchase a new or used car is a big decision,
especially if you have just filed a recent bankruptcy. Of course, the
decision is largely based on how bad you need a vehicle. There are valid
reasons for financing a new or used car after bankruptcy. On the other
hand, there are also numerous reasons to delay the car buying process.
Before applying for an auto loan, carefully consider whether nows the
right time to finance. When Was the Bankruptcy Discharged? Once your bankruptcy has been discharged, you are free to finance an
auto loan, mortgage, or acquire a credit card. However, you will incur
huge finance fees or interest. For the most part, financial experts
recommend waiting at least six months to a year before financing a large
expense. The interest rate you receive on an auto loan immediately following a
bankruptcy will be approximately three percentage points higher than the
average loan. This will significantly increase your monthly car
payment. To avoid high fees, wait until your credit improves. Have You Established New Credit Accounts? After a bankruptcy, it is vital to establish new credit accounts.
Bankruptcy gives you the opportunity for a fresh start. Thus, you should
apply for new credit cards, department store charges, gas cards, etc. The
only way to improve your credit score after bankruptcy is to open new
accounts and maintain regular payments. In time, your score will rise,
which justifies a better rate on your auto loan. Choosing an Auto Loan Lender for New or Used Car If you decide to purchase a new vehicle, the next step involves
selecting the right lender. There are quite a few options available. You can
obtain financing through a new or used car dealership, or you can secure
your own financing. If possible, compare rates from at least three to
four money sources. Contact your bank or credit union and inquire of
their rates. Notify the lender of your current credit status. In most cases, you will have to secure financing through a sub prime
lender. Some traditional auto loan lenders may offer these types of
loans. Another option involves taking advantage of online auto loan brokers. Brokers will thoroughly assess your credit application, and match you
with various lenders. Next, the broker will email you quotes from these
lenders. You pick the most desirable loan package. View our recommended [http://www.abcloanguide.com/carloanafterbankruptcy.shtml]Car Loan After Bankruptcy lenders. Article Source: http://EzineArticles.com/?expert=Carrie_Reeder http://EzineArticles.com/?Auto-Loans-after-Bankruptcy---Should-You-Finance-a-New-or-Used-Car?&id=126208 how to fix my credit
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