Getting Car Loans After Bankruptcy-auto Financing Bankruptcy
Getting Car Loans After Bankruptcy-Auto Financing Bankruptcy
In UK, bankruptcy or insolvency hovers around the life of a lot many people like a nightmare. Being declared bankrupt is perhaps one of the worst things that can happen to a persons financial life. And it seriously takes a considerable period of time to bring your financial life back to normalcy. Your credit history is literally destroyed and puts you in a situation where you find it extremely difficult to get a loan approved.
But still, for these helpless people, various financial institutions are there to help people get a car loan even after being insolvent. Now, finding out the best option is not always possible for a single person. Hence it is recommended to have a discussion with a financial consultant first.
Car loans are available for both for people during bankruptcy and for people whose bankruptcy is discharged. Lets see what happens after bankruptcy is released. After bankruptcy is discharged you generally people should be qualified for a car loan. Your first car loan after bankruptcy will certainly cost you a higher interest rate than you are used to.
So consultants recommend buying a car that only caters to your need with a short term loan. People have been seen buying expensive cars just after insolvency for as long as 6 years loan term. Normally after 12 or 18 months the borrower becomes eligible for a better interest rate but that does not happen too easily. The loan value remains high and people cannot trade in or re-finance and fall behind.
Now lets talk about the car loans during insolvency. As a matter of fact you are eligible for two types of car loan. In the first type, which is secured loan, you can get lower interest rates but this is a rare case as you have to keep something as security to the lender which is not always possible because you are bankrupt. Apart from that the lender would check your credit history which is by now destroyed as a result of bankruptcy.
In the second type, the unsecured car loan which is seen in almost all after-bankruptcy car loans, worrying about credit is not required; neither do you have to give any collateral. Only the interest rate is high. The important point to remember in this case is that, while an untimely payment can bring in more problems in your credit score, timely payment can improve your credit score thereby causing to reduce interest rates.For Full Information Visit to -http://carnationcarfinance.co.uk
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