Bankruptcy Recovery - Financing an Auto Loan after Bankruptcy

Author: Sean Patrick

Article:
These days, searching for an auto loan after bankruptcy is not
nearly as discouraging as it once was just a few years ago.
There are now multiple lending agencies who specialize in
bankruptcy clients. Securing an approved car loan is much
simpler than finding financing for a personal loan. This is due
to the fact that the financial lending company has your
automobile to use as collateral should you not make your
payments. In fact, getting a car loan after bankruptcy is a
valuable tool to get you back on the correct financial path of
life. Utilizing an auto loan to rebuild credit is excellent as
long as you find an approved auto loan that is manageable for
your financial situation and are able to make payments on time.
This would be your first *best step* towards bankruptcy recovery
and Ottawa Car Loan's can start you with an approved car loan.

When using a car loan to rebuild credit the most important thing
is to find a bankruptcy auto loan that is manageable for your
specific situation. You must ensure that your payments are made
on time. Your loan interest rate will be higher at first but
after six months you will have an improved credit rating and
should qualify to refinance at a lower rate.

When applying for your car loan after bankruptcy, it is wise to
use an online auto finance service. You are simply asked to
describe your financial situation on the initial application.
The service will than submit your information to a network of
dealers and lenders. In many cases you will receive multiple
offers from which to select a suitable car loan. You will have
an approved auto loan before even visiting a dealership.

Remember to choose a vehicle that is reasonably prices as
opposed to a more expensive model you may be in love with. Your
initial interest rates will be between 14% - 19% or higher until
your credit rating improves. After 12 months of making your
payments you will have the option to refinance or to upgrade to
another vehicle as your interest rates will be back down to the
sub 10% rate. Please do not put yourself into a situation where
you are unable to mange these monthly payments.

Education is best as it is the smart consumer who comes out
ahead. For example, educating yourself on the interest rate and
terms of your bankruptcy auto loan and do not accept an offer
that is not suitable to your specific financial situation. The
last thing you want is to find yourself in a situation where you
are unable to manage those monthly payments.

With an approved auto loan you are well on your way to financial
recovery.

About the author:
Sean Patrick is a special finance officer at Car Loans Canada.
For more information visit

http://www.carloanscanada.com/canada-auto-financing-resources/car-loan-after-bankruptcy.aspx
to find out all of your options.