I filed Chapter 7 bankruptcy two years ago. I would like to finance a used car this year. Is there any hope?

I would like to finance a used car but Im afraid of being denied for a car loan and Im sure the interest rate will be sky high. Has anyone gone through this before. It's only been two years since I filed Chapter 7. I hear about those loans all the time, Bad Credit, no problem, but is it true?

Public Comments

1. Bad credit, no problem just means they will charge you a higher interest rate. I believe that bankruptcies stay on your credit report for 7 years. I believe you can probably get financed, but expect to pay a high interest rate.
2. Maybe the place to start is to work on getting the income side of your equation up.....then you'll have the satisfaction of not needing the finance people. Good Luck
3. Yes. We got a rate of 6.5% We have Chapter 7 also. Try the lending tree. We got our loan from Capital one. Your rate will be a little higher on a older car. Don't worry, Shop around first before you take a high rate.
4. that what exactly will happen a high interest rate from those we finance anyone places. but if u accept, it increases fico score tremendously. you have to rebuild ur credit slowly so, creditors can regain your trust in order to lend the money. go to one of the big three credit companys and see for ways of rebuilding your credit. experian, transunion, and the third escapes me at the moment. by the way ur entitled to a free credit report annually from credit bureau's it wont include ur fico score but u can see what still there are not. good luck
5. The interest rate from "bad credit" places are horrendous. Do you have any collateral? The better way to go would be a collateral loan with a bank. Have you actually checked your credit score or consulted with a credit counsellor? By credit counsellor I mean one that is not from the loan company, but an independant one who doesn't loan money. They are the ones to advise you how to get your credit back. However I have a friend who buys clunker cars for a few hundred bucks and when it breaks down he has it towed away, exchanging the car for the price of the tow and buys another clunker. So for a few hundred dollars he gets a year or so of driving and pays way less than the rest of do. He never has any car repaired. What some people pay for a lease for a couple months he pays less for an entire year. And the cars are always repainted so they look good and he doesn't have to go into debt. He's one of those people who don't believe in borrowing money.
6. A broker might be your best option. They can shop your deal around to multiple sources with just one application and in most cases get you a good rate. However, beware that you will pay for it somehow (usually in the interest rate) as the broker has to make money somehow. It still can result in a good deal for you though since they have access to more sources than you might on your own and they specialize in less than stellar credit. Long story short, try a broker, but also try on your own and compare. Take the best rate. It's possible, but difficult, just try and keep the mistakes from happening before from happening again. Try and be a little cost conscious and make sure you are borrowing an appropriate amount.
7. WE ALSO FILED BANKRUPTCY 2 YEARS AGO. WE HAVE TRIED TO BUILD OUR CREDIT SLOWLY. GETTING SMALL CREDIT CARDS AND MAKING THE PAYMENTS ON TIME EVERY TIME, IT HAS PAID OFF FOR US JUST THIS WEEK WE ARE CLOSING ON A 68,000. DOLLAR HOUSE. SO I GUESS THE ANSWER TO YOUR QUESTION IS DEPENDING ON WHAT YOU HAVE DONE SINCE THE CHAPTER 7
8. Of course there is. Auto finance is what I do for a living, go to a dealer near you that advertises Special Finance and talk to the manager, they will be able to help you. There are several banks that have wonderful bankruptcy programs for people just like you. As long as you have not had any derogatory credit after your bankruptcy was discharged you will be approved. You might go on line and try Capital-One, Wells Fargo, Citifinancial Auto and H.S.B.C. first. That way you can go to the dealership of your choice with your own financing already in place.
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