It is quite difficult to avail any kind of finances while you are bankrupt. But there are some private lenders who can provide a car loans for bankrupts and you can avail the same with fewer documents. If you are bankrupt or discharged bankrupt then you can submit your financial details including your bank statements of last one year to prove your financial capability. In this case, lender can check the inventory details of your business and disburse the car loan according to your capability. But they can charge you higher rate of interest and you must compare their interest rates before you finalize the deal. 

Car loans for bankrupts are provided on the basis of your personal and financial situation, and lenders cannot concentrate on your credit history in this regard. You can apply for such car loans online. There are some private lenders available online, where you can fill up their application form and submit your documents. If you demonstrate your financial ability to make the payment on time then lender can disburse your car loan within few days.   

#6 Tips to get Car Loans for bankrupts:  

Credit score: Credit score or credit history will show the person’s ability to repay the loan and lender will check your credit history before they approve your car loan. Before applying for a car loan, you much review your credit history. You can repair your credit score by making credit card bill payments. Apart from that, you can also clear your taxes and EMIs on time to improve your credit score. 

Never apply for multiple loans: Rejection of loans can reduce your credit score and you must avoid multiple applications for loan. In this case, you can check your loan eligibility online and calculate the EMIs for your car loan from online loan calculator. If you apply for multiple loans at a time, then lenders will consider your application as negative applicant because multiple loan applications will indicate your financial depression. So, it is better to check your eligibility for car loans before you apply, and if you have discharged bankruptcy then you can take help from brokers to choose a perfect lender. 

Large amount of down payment: If you make a large down payment for your car then lender can finance the rest amounts. Bankrupt people are treated as financially weak and bank or NBFCs cannot approve you 100% finance option. Plus, you need to pay higher rate of interest for such car loans for bankrupts, and you can reduce your stress by making a high down payment. 

Old car as security: You can pledge your old car as collateral and apply for a secured car loan. In this regard, lenders will approve 90-100% of the value of your old car as car loan and you can repay the amount on time to release your car from the lender. Else, you can sell your old car and make a high down payment with this amount. 

Fixed deposits: If you have fixed deposits then you can use your deposits to avail car loan. You can submit your fixed deposits in bank to get a secured car loan. The bank will approve the amount of your fixed deposits as car loan and they will take the original papers of your FD as collaterals. 

Second hand car: You can buy a used car to repair your credit history. Repayment of your car loan will remove the glitches from your credit history and you can take a used car on loan. There are several lenders available who offer car loans for bankrupts on used car and you can avail the same by submitting your documents.    

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