For those in bankruptcy, one of the main concerns is to find and obtain car loans after bankruptcy. Fortunately the auto finance companies realize this and have developed a number of lending programs that are targeted at bankruptcy auto loans as well as bad credit car finance in general. These loans go by several names but three terms to look for when you have bad credit and where approval of your loan is more important than the interest rate to be charged or the terms of the loan include the following:
- Guaranteed auto loan which is loan generally made to those who have a job that they can document along with an income they can document that will support the intended car payment. In a guaranteed auto loan, the job and income are largely substituted for the poor credit score of the borrower.
- No cosigner car loans are advertised for those who have had a bad experience trying to find a qualified cosigner on an earlier loan. They know getting a cosigner with good credit is a very hard job and they want to avoid this at any expense. Loans advertised as no cosigner car loans charge a very high interest rate in place of having to get a cosigner.
- Bankruptcy auto loans are the third type of poor credit loans and attract those who have been in bankruptcy. Actually these may be the lowest interest of these three since those who are in or emerging from bankruptcy are well aware of the problems that one can incur with too much debt.
These are the three principal loans for those with poor credit and offered as bad credit car finance. It allows those who need a car but generally could not finance one to get the financing they need. It’s where approval is goal #1.
