Getting a car loan after filing for bankruptcy is not impossible. You might need to be more diligent than the person who has not filed bankruptcy, but if you are persistent, and follow some of the guidelines that I have outlined below, you can get a car loan after bankruptcy.
Make Sure a Car Loan is a Priority
Sure buying a new car is a great experience, and making your payments for that new car will improve your credit. However, chances are, if you have recently filed for bankruptcy you might still be reorganizing your finances, and trying to stabilize your expenses. Determine whether or not buying a new car is a priority before you jump into it.
Repair Your Credit
Before you start shopping around for a financing deal on a car, it is important that you repair your damaged credit to the best of your ability. It is also necessary that you have an unsecured or secured credit card with at least six months worth of payments.
Having a good payment history makes your credit score climb, so lenders are definitely looking for a solid payment history, especially with someone who has filed for bankruptcy. After your bankruptcy discharge, you will more than likely receive credit card applications in the mail. Granted your credit limit might not be very high, and your interest rates probably will, it’s a start.
Find a Good Deal
Researching the best deal on a new car is the first step once you have established your priorities, and gotten to work on repairing your credit. Websites such as Consumer Reports or Car and Driver can give you excellent reviews and ratings for new cars, so you can find the best car to suit your lifestyle, and your budget.
Make a list of all the car dealerships in your area, and start calling around. Speak with someone in the finance department and give them some information on your financial situation. Tell them that you have filed bankruptcy, and when. Let them know if you have a mortgage payment, and that you make your payments on time. Tell them that you have received your bankruptcy discharge, and ask if they would offer you financing on a new car. If they say that they would get some details on the kind of rates, they offer people in your situation.
It is very important that you do not allow them to look at your credit report until you get a definite answer, and a deal that you are willing to agree to. Credit inquiries without a guaranteed loan really hurt your credit score, especially after filing for bankruptcy. If you are able to make a down payment and have a cosigner who has good credit that also helps to sweeten the deal in the lender’s eyes. Be diligent in your search and don’t give up.
Do You Need to File for Bankruptcy?
If you think that you need to file personal pr business bankruptcy, the bankruptcy lawyers at McFarlin LLP can help. Our firm offers free bankruptcy consultation to prospective clients. Give us a call (888) 728-0044 or email us here to get started.