There are several car buyers who have had to go through refinancing auto loans after declaring bankruptcy and experience the collapse of their finances. This tends to lead to a very bad credit score and additional problems with getting approved for other loans. However, AutoNet Financial is capable of providing a loan service that helps people improve their credit score.
With that said, many people are curious to how any auto finance company conducts the lending process. That is why we choose to touch on what our specialist focus on, when deciding to approve a borrower for a loan.
You might think that you are able to refinance a special car loan after bankruptcy once your final payment has been made. However, this does not always mean that the bankruptcy term is removed from your credit report. That is why it's important to get a copy of your report immediately to verify it's removal. If left unchecked these marks can stay on for various lengths of time. All you have to do is call a credit reporting agency like TransUnion, Equifax or Experian, who can give you a better sense of when the bankruptcy is going to be removed.
Perhaps you have discovered that the mark is going to rest on there awhile. When you bought the car, you went through the proper process of a pre-approval with our lenders, and you feel you should be rewarded for your good faith efforts. Well, people generally obtain second chance car loans for two reasons:
The second choice will likely still be available to you. By increasing the number of months in your agreement, your payment amounts should start to drop quite soon.
You may be wondering why you are not a candidate for the interest rate reduction. Well, when you have a car loan, your interest rates are heavily based on your credit scores. Therefore, if you still have the bankruptcy on your credit report, getting a reduction in your interest rates is going to be difficult if not impossible. However, maybe the bankruptcy mark is gone. As long as your credit scores are higher than they were when you took out the loan, you may very well see a decrease in the interest rates after refinancing has occured.
Refinancing a bankruptcy car loan is definitely a smart idea because doing so can bring you some major benefits. Just consider all of this information when you are doing it after you have been in a state of bankruptcy.