Auto Loans After Bankruptcy: Is It Possible?
Bankruptcy is devastating, and it takes time to recover. But what about buying another car? Are auto loans possible after bankruptcy?
In many cases, they are. It doesn’t necessarily mean you have to wait years to be eligible for auto financing. However, there is a right way to go about it.
Rebuilding Your Credit
Debt.org, an organization for help with debt, recommends applying for a secured credit card first.
This type of card requires you to put down a deposit that’s needed to open the account. Then pay off the amount each month for the next 12 months.
Once you’ve done that, the organization recommends moving onto an unsecured credit card.
This step helps to build a positive credit history, and that’s key in determining your eligibility for an auto loan! It will also determine the interest rate for your loan.
The more history there is to show that you are a lower credit risk, the better!
Auto Loans and Your Credit Report
Before any major purchase, the Consumer Financial Protection Bureau urges all consumers to check their credit histories.
Every American citizen is allowed one free credit report each year. It’s a good idea to check it because about 25% of the information in the report could have errors.
If you’re recovering from bankruptcy, this step is crucial. You want to check to make sure there are NO errors. If so, take steps to correct them.
Auto Loan Financing After Bankruptcy
Once you’ve taken positive steps to rebuild your credit, you can begin the task of finding a good used car. Here at Joe Bowman Auto Plaza, we have a program called Second Chance Credit.
If you’re actively working to repair your credit, we want to help. We know that there are agencies that charge outrageous interest rates for consumers recovering from bankruptcy.
When you’re saddled with a very high interest rate, it’s very difficult to build any kind of equity!
With our network of local lenders and large finance companies, we can shop around to get you the best interest rate possible.
Will you pay a higher rate? Yes, but you will not pay an exorbitant interest rate.
We’ll break down the terms of your loan and show you exactly what you are buying. And with our simple interest loans, you have the option of paying ahead on your loan—without the risk of penalty.
That’s another way to demonstrate your commitment to building a strong, positive credit score.
Get pre-qualified on our site and talk to us about what you want to buy. Auto loans after bankruptcy are possible.
Take control of your credit and get yourself in the driver’s seat. We can help!
Go to https://www.joebowmanautoplaza.com to learn more about us.