When you ask most individuals today about their chances of getting an auto loan before a bankruptcy has been discharged off their credit history, the majority of them will assume that it is all but impossible as bankruptcies remain on a person's credit history for 7 to 10 years. You might be surprised to learn that bankruptcy car finance enables you to procure an auto loan or refinance your current auto before the bankruptcy has been removed from your credit history. Yes, it may be difficult at times but getting bankruptcy car finance is not impossible.
Depending on your current situation, you may have to contact your attorney in order to arrange a meeting with the bankruptcy trustee who is managing your case. You may be required to get written permission from them before attempting to obtain bankruptcy car finance for a new or used vehicle. If you have a purchase order for the vehicle, the trustee may want to see this in order to see the price range of vehicle you are considering.
Subprime lenders are in the business of providing different types of auto loans to individuals with poor credit histories which includes bankruptcy car finance. Normally, you will find that these lenders charge higher interest rates than other types of lenders so as to offset a person's poor credit score. This is also referred to as direct financing since you are dealing directly with a lender.
On the other hand, indirect lending is provided by the auto dealership that you wish to purchase your vehicle from. In some cases, these dealers will offer in-house bankruptcy car finance without a major credit check. Just beware of the fact that their interest rates are going to be considerably higher than others and very similar to the interest rates that you would find at a subprime lender.
The primary thing that you want to focus on is re-building your credit and bankruptcy car finance provides you with an opportunity to start doing that. Obtaining a second chance credit card is also advisable where this is concerned and will help you start getting your credit history back to an acceptable level. In either case, making on-time payments and maintaining that payment record with your credit card and your bankruptcy car finance is the best thing you can do to ensure re-building your credit score.