Bankruptcy is probably one of the worst things that can happen to someone financially speaking. Everything becomes more complicated after that. Each time you attempt to get a loan or a lease you have to undergo a grueling process of credit repairs and reports, scouting ahead for the companies that are willing to even give you a car lease considering your spotted credit history. Following these steps will save you a lot of time and frustration and more important it may help you skip on some credit reviews and inquiries that are paid at a very high price, namely 12 FICO credit points per inquiry.
Bankruptcy Car Lease
The first step you must make is finding out what are the lending conditions and if companies are even willing to lend to someone with a bankruptcy. No matter what leasing company you head to, never try to hide the fact that you’ve filed bankruptcy, because they can easily find out that by simply checking your credit history and it will make matters a lot worse. You have to simply accept and deal with the fact that certain leasing companies or dealers do not want to work with people who have gone bankrupt. The idea is to find those that are willing to.
Some companies may only to lease to someone that has undergone a bankruptcy, which is a good thing since that’s what we’re focusing on. Leasing can be easier to get, than a financing purchase for example. You should head on and ask the financing director to aid you in choosing a structure that is more suitable for the manufacturer. Here’s a little advice: in case you don’t have the bankruptcy written on your credit report that the lending company pulls, than you are not filed for bankruptcy in their eyes. Therefore some of the lenders that experts consider that are the best at dealing with bankruptcy situations are : Captive leaders or, more plainly, car manufacturers, banks (but not other financing companies) and some credit unions. Yet the Captive lenders are by far the leaders in bankruptcy situations with 90% car leasing acceptance for individuals that have filed bankruptcy. The idea is to be flexible and careful in the same time.
Step 2 refreshing your credit score. Having the most recent credit score when going to a dealership is imperative since it gives you a certain level of control of the negotiation. You are not left at the dealer’s mercy because you’re bankrupt. The moment you enter the dealership with your FICO scores in hand, the dealer knows that you are a well informed customer so he can’t start playing you for the fool. Yet keep in mind that dealers use a different FICO score than the customers. Their FICO system resembles the Auto Industry Options Scores. This may be a good thing for you since their scores can sometimes be higher than you own FICO score in case you made good payments on previous car loans. In some cases, dealers that want to make out of you a regular customer might even use your FICO scores in case the credit score is higher than their own.
Finally you have to decide which case is best for you, if leasing is indeed the best way to go or if purchasing a car would be the better solution. Therefore, since you’re recovering from a bankruptcy, your first priority is getting a lender that is willing to offer you a lease at all and give you some decent rates so that you can handle the monthly payments.