Obtaining a Car Loan After a Bankruptcy or Repo

If you are like many families that are living paycheck to paycheck unfortunately you are not alone. Many families have needed help with their banking along with being able to get an approval for an auto loan after bankruptcy or repossession and in many cases have been able too depending on many factors.

A list of factors that a bank will take into consideration includes your income. If you are able to provide a steady source of income for your family and have proof of that with your tax statements or paycheck stubs you may have a better chance of getting approval for an automobile loan. If your spouse also has an income do not be afraid to put their income on the loan application as well since the the bank will take all household income into consideration.

Another factor that a bank will take into consideration is your length of employment or time at your current job. An individual that has has held a job for more than two to three years will spark interest in a bank and may help you in the loan approval process. A bank will also take a look at how many jobs that you have been employed with over the past 10 years, by looking into your past employment record the bank will evaluate how reliable you are for your employer.

One last thing that a bank will want to check is your credit history to see how you are paying your other bills. If you have other credit cards or bank loans that are continously late or have any been repossesed the bank will frown on that and will consider you as a high risk and will not approve you for a auto loan. In some cases if you prove to the bank that you are reliable and can pay all of your bills on time over a 6 to 12 month period they may decide to give you a chance on a small auto loan, but that is up to them on that decision.

A bankruptcy or a repossession can hurt your credit considerably but you need to consider the outcome before doing so.

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