By Aurel Radulescu

If you have recently been through a bankruptcy, you may be feeling as though it is impossible to obtain credit. Reasons that include what you have heard about the stigma of bad credit and what you have read may leave you feeling helpless, especially if you need a more reliable automobile. If you are looking for used cars, you may be able to find one even if you have less than perfect credit.

Buying used cars after bankruptcy, late payments or even a repossession is often possible in a number of situations. If you can find a dealership that offers owner financing or an individual who is willing to do the same and has a car to sell, you may be in luck. With owner financing, the business or individual grants you the right to make monthly payments and is often done without a credit check. The other option to purchasing used cars with poor credit is through a dealership that is experienced in helping individuals get approved with local lenders even if their credit history has some blemishes. If you are approved for financing, you can expect to pay a higher interest rate than those who have good credit simply because the lender will consider you as a ‘high risk’ loan. This means that, because of past credit problems, they believe you are at a higher risk of not repaying the loan. The higher the risk, the higher the interest rates.

If you are shopping for used cars after bankruptcy, the best way to ensure your loan approval is to start rebuilding your credit. You can do this by getting a secured credit card or by applying for one that specializes in helping individuals to rebuild their credit. After three months of regular payments on a new account, your credit score will begin to improve. It is also important that, before applying for any type of loan for used cars, you work on cleaning up your credit report. If you have recently been through a bankruptcy, your credit report may not reflect every one of your accounts that were included in your petition. Some creditors do not update properly, which means that you may need to file a dispute with the credit bureau so that they may launch an investigation. It can take some time to get your credit report corrected, but will prove to be worth it when it comes time to apply for a loan.

When shopping for used cars, you will need to have a down payment. If your credit history is less than perfect, you may be required to have a larger down payment than other consumers. The best way to determine this is to simply ask the used cars dealership and explain your situation before falling in love with any one car. Browsing for used cars will be a lot easier if you know that you are working with a used cars dealership that will help you obtain financing and will work to get you the best possible interest rates for the life of the loan.

Read more used cars buying tips, where to find used cars or how to find the value of an used car http://www.usedcarspace.com/KellyBlueBook.php
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