Getting a car loan after being bankrupt will have a lot of challenges. Lenders will be more cautious assuming you might default on the new loan. The only way to get past their trust issues is to prove that the risk of a default happening is extremely low. If you want to get a car loan in Arkansas despite the bad credit, there are several techniques to guarantee a lender.
Reveal Proof of Income
You should request a proof of income from your employer. If you cannot get this, just provide the lender a copy of your paycheck stub as it will assure them that you have a stable income. If you have been with the company for quite a while, let them know that you have good job stability, like promotions or raises.
But, it will be more difficult for individuals who are self-employed, even if they get higher incomes. Confirming consistent earnings is essential to a lender compared to higher, infrequent payouts.
Put a Large Down Payment
A huge down payment will lessen the size of your total loan. Placing a huge down payment will also act as a sign of goodwill towards your lender. If you already have a big amount of money to place down for your new car loan, lenders will be more eager to assist you. You can also reassure them by placing bigger monthly payments than the average person to let them know that you have the capacity to pay for the loan.
Furnish Character Statements
A character statement isn’t just a reference from other lenders or friends. The statements should reveal why bankruptcy happened and it should demonstrate that you are not at risk for default anymore. An example would be if you went bankrupt because of a medical emergency or divorce, the statements can prove that you have overcome the problems.
When you are getting a car loan, the primary goal should be to prove to lenders that you aren’t going through any financial issues anymore.