Bankruptcy And Buying A Car
If you are thinking about buying a car after filing for bankruptcy in Issaquah, WA, what are your options when it comes to getting a loan? In many cases, it is possible to get an open bankruptcy car loan claims have been approved by a judge or despite currently filing for it right now. The only thing you have to know is what you need to provide a lender to make sure you can buy a car.
Do You Have A Job?
When it comes to buying a car after bankruptcy, you increase your odds of getting approved for a loan if you have a job. This is because you have a source of income to pay off your loan. Those who have a steady income in Issaquah are more likely to repay their loan on time. Typically, lenders are going to be comfortable enough giving you a second chance as long as the rest of your credit history is acceptable.
How Much Money Do You Make?
While having a steady income is considered a good thing, how much should you make and what type of income should it be? Factors that help you answer that question include:
- Earned Income Trumps Everything Else
- Your Debt-To-Income Ratio Should Not Exceed 30 Percent
- That Income Should Be Verifiable
Earned income is a good thing because you tend to make more from a job than you do from collecting child support or collecting interest from investments. If you are not spending more than 30 percent of your income, you are considered to be handling your debt responsibly. Borrowers in Issaquah, WA who can verify their income increase their odds of being approved for a loan because lenders know that the money will be there each month.
How To Get Guaranteed Auto Loan Approval After Bankruptcy
If the bankruptcy occurred more than 12 months ago, lenders generally will guarantee financing and will work with you. However, if the bankruptcy occurred less than 12 months ago, approval for a loan will depend on having an otherwise clean credit report and history.
Getting a car loan after declaring bankruptcy isn't an impossible feat when working with Dougs Credit Center. However, you will need to prove that you have a consistent and verifiable income while also proving that you have learned from your mistakes. If you satisfy those criteria, you generally can get a loan without a lot of hassle.