Bankruptcy is a critical situation that is not favorable by most of the lenders. When it comes to giving a loan to individuals as well as companies for buying a car, auto lenders are at high risk. If you are a part of bankruptcy, lenders will hesitate in giving you a loan. Even after your bankruptcy state is discharged, they will ask a couple of questions from you to assure that you have enough credits so they can lend you some loan. They will try to be at lower risk while giving you a loan. It is always good to prepare for necessary questions, when you plan to meet a lender. Here are important questions that you must learn.
The first and most important question that will be asked is about your bankruptcy discharge. They want to confirm that you are not involved in any legal procedure that will cause a problem for the lenders. Those who are in bankruptcy filing state have chances of adding lender's name in the legal process. This will not appreciate by most of the lenders and they want to confirm that this legal state is over. If you are in filing state you should clear with them that you are in bankruptcy state. But if you have not received any notice of discharged bankruptcy you can inform and tell them the exact date of discharging. Discharged means completed not a dismissed bankruptcy state.
The second most important question of lender is about your
payment transactions. If you are delaying payment once your
bankruptcy period is discharged, you will be at great risk of
getting a loan from the lenders. Your credit score record should
not have a single delayed payment if you want to get a loan.
Lenders have specified rules of judging the credit reports. They
consider delayed payments as biggest risks, when providing a loan
to a person having discharged bankruptcy. Even if you have cleared
everything and you are no longer a part of any legal state and due
to personal issues you delayed the payments, still than your
chances of getting loan will decrease. No need to lie about your
payments as everything will be described in your credit report. If
you lie about the payments, they will not trust you more after
looking at the credit report.
The third important question is how you have maintained your credit and how much you have saved for a down payment. You have to save some amount for a down payment because it is the only possibility that can save you from big risks and highest interest rates. Lenders ask for down payments up to $500 depending on the item for which you are getting a loan. After bankruptcy discharge, you should save some amount for paying as down payment. It is an essential demand of most of the lenders when they came to realize that you have faced a legal state.
These questions are extremely important to recall again and again and prepare for them, before you visit a lender. Make sure you have great answers to all these questions to become eligible for getting an auto loan.
Cars On Terms helps you get your car loan even you are a bankrupt, student or retiree. They are located in Brisbane, Queensland, Australia.