February 6, 2010
Credit Unions as a Source for your Car Loan after Bankruptcy
Many newly-bankrupt consumers fear interest rates of 20% or more on their first car loan after bankruptcy. Such high finance charges are not atypical of “buy here pay here” car lots, dealer financing, and subprime lenders when you have heavily-damaged credit.
Fortunately, credit unions can be a viable alternative for securing an affordable car loan after bankruptcy. Credit unions often offer lower rates on installment loans and secured credit cards — both of which are key to repairing your credit after a bankruptcy. To join, you’ll typically need to have a good payment record for one year after your filing; if so, organizations such as findacreditunion.com can help you find a credit union for which you’re eligible — oftentimes, eligibility is based on factors as simple as your state or county of residence.