If you have recently filed for bankruptcy, you may think that you cannot get a new car for 7 to 10 years. This is not the case! You should know that you do not have to wait until the bankruptcy is cleared from your credit report to purchase a car. However, you will not want to rush out and buy a new car immediately after filing for bankruptcy.
Once your bankruptcy is complete, you need to begin taking active steps to repair your credit. Swearing off credit cards and loans is not the answer to post-bankruptcy life. What you will want to do is take deliberate steps to rebuilding your credit. The longer you can wait to make large purchases, like buying a car, the better. However, sometimes you need to get a car for work or to handle your affairs right away.
Keep in mind that it can take around 6 months to see positive changes to your credit score after making a conscious effort to repair your score. So, do not get discouraged! Keep making positive changes and you will see improvements before you know it. Click here for more information on how to repair your credit.
- Get a copy of your credit report
- Fix any mistakes on your credit report
- Lower your credit card utilization rate
- Pay your bills on time
Where should you get your auto loan?
Many lenders may be concerned about lending you money after a bankruptcy, but that does not mean you will not be able to find financing options. So, where should you start? Talk to your personal bank or credit union about financing options. Remind them of your long history of accounts with them and see about loan options that will work for your specific situation. You may also want to consider an auto lender that works with customers that have bad credit. Do your research first and make sure that you consider different options before moving forward with any lender. Also, you can see about “swap leasing” to take over someone else’s lease and payments. Again, read the fine print and know exactly what you are getting into before committing.