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Bouncing back after a recent bankruptcy is challenging
but possible. To begin with
you will need to rebuild credit
which involves opening new accounts. If you need a new vehicle
financing a car following a bankruptcy may be a smart move. Auto loans are easy to qualify for. Thus
you can get approved with horrible credit.

How to Avoid High Interest Rates?

If your bankruptcy was recently discharged
high interest rates may be unavoidable. Yet
there are ways to purchase a new car without paying several percentage points above the current average. Sadly
there are some people paying interest rates 18% or more.

To avoid high fees
postpone financing a new or used vehicle. Instead
attempt to get a secured credit card. Make timely payment for about a year. In time
your credit score will improve
making it possible to obtain an auto loan with a rate of 9 or 10 percent.

Choose a Used Vehicle to Finance

If you are hoping to improve credit by financing a vehicle
opt to finance a small amount. Thus
even with a high interest rate
you can receive affordable payments. Another tactic involves taking charge of the car buying process. Instead of allowing the dealership to determine monthly payments and loan term
inform the dealership of how much you are willing to pay. Your ideal monthly payment should include finance fees.

Use a Subprime Auto Loan Lender

After a bankruptcy
subprime lenders are helpful with helping people secure auto loan financing. Some lenders are shady. On the other hand
a large number of lenders understand your circumstances and attempt to offer affordable solutions. If using an auto loan broker
you have the opportunity to receive various quotes from different subprime lenders. This is ideal for making comparisons and choosing the best loan.

Apply for Loan with a Co-signer

If you are hoping to obtain an auto loan with a low interest rate
it may help to apply for the loan using a co-signer. Co-signers or co-borrowers become responsible for the loan if you are unable to pay. If your co-signer has exceptional credit
you may qualify for a low interest rate on your auto loan.