When you filed for bankruptcy, you did so with the knowledge that it was going to be difficult to apply for future loans. However, while a bankruptcy may make it hard to get a car or home loan, it doesn't make it impossible. If you are in need of a vehicle but cannot afford to pay for one in cash, there are ways that you can get a car loan after bankruptcy.
Reestablish Your Credit
Though secured and unsecured credit cards generally come with outrageous interest rates, they are a great way to rebuild your credit. If you continue to pay off your balance each month or, better yet, if you pay off your card as you charge it, you should be able to keep rates low to non-existent. Within six months of making timely payments, your credit score will increase enough to earn you better rates and better deals.
Do Your Research
Finding a lender with fair terms is challenging when applying for a car loan post-bankruptcy. Many lenders approve post-bankruptcy individuals but charge high interest rates and unreasonable terms, such as doubling the interest rate if the loan isn't paid back within 24 months. Avoid such lenders to prevent stress and defaults.
Identify the Right Deal
When buying a car, it's tempting to go for the cheapest option available. However, a cheap car may require frequent maintenance and repairs, ultimately costing you more in the long run. Instead, consider investing in a newer and more reliable vehicle. Although it may be more expensive to maintain, it's also more likely to be approved by a lender due to its higher value and lower risk of breaking down. By investing in a more reliable car, you can save money on repairs and ensure that your transportation needs are met in the long term.
We don't want you to be burdened with negative equity which will only worsen your financial situation and credit score. We want you to build equity in your new vehicle and for those who unfortunately are faced with a high interest rate work with you to improve your credit score so we can get you a new loan and vehicle at a much lower interest rate.
Please begin a relationship with us by filling out our secure online application and let's start your mission to having an "A" credit score!
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