Problems Faced While Getting Auto Finance After Bankruptcy

One major reason as to why the whole lending industry swears by credit scores is that one check would give a lender all the information he/she requires on the payback capability of his/her would be client. Therefore, if the credit history check shows up a bankruptcy on an applicant’s report, then chances are that most of the lending institutions would shy away from providing the finances. People unaware of how the lending industry works wonder as to how can a bankruptcy completely devoid an applicant from getting approved for auto finance.

Well, having a bankruptcy in the credit records basically conveys the fact that the applicant wasn’t responsible with his/her finances in the recent past. And, this fact isn’t liked by people (dealerships, credit unions or lending institutions) as they could not take risks with their money. Being irresponsible might not be a fair assessment as there are several reasons which can result in bankruptcy such as loss of job, divorce, serious medical condition or even a tragic accident etc. All this states is that the first thought that almost every lender would view an applicant with a bankruptcy filed in this context.

It is known that many responsible individuals also end up filing for bankruptcy and this fact isn’t hidden from the lenders. The rise in the competition between lenders have made them more aware and sympathetic towards borrower problems but it would still be difficult to get approved for auto finance after bankruptcy.

Tags: ,

Leave a Reply

You must be logged in to post a comment.