Can I Get a Car Loan After Bankruptcy?
May 19, 2008
So you have been through a bankruptcy and need a new car, but you are worried that your past financial history might keep you from getting a car loan? Relax! Yes, you can get a car loan after bankruptcy. You will need a type of loan that is called a bad credit car loan. With this type of loan, your interest rates will more than likely be higher, but you can get the loan whether you have good credit, bad credit, or even no credit at all.
Some people are able to go out right after a bankruptcy is complete and get a loan for a car. They argue that they have no choice, as they have to have something to drive. But, it’s really best for you to wait for a little while as you might find it a bit difficult to locate a lender who will give you a loan so soon after bankruptcy.
That’s not to say it can’t be done, because it can! All you need to do is look for a lender that specializes in bad credit auto loans. These kind of lenders are not bothered by people with low credit scores who apply. They are in business to lend money to people who have gone through bankruptcy, had a mortgage foreclosure, had a previous car repossessed, or just have plain old bad credit. These lenders have a special name of sub prime lenders. Whatever your credit situation is, you can usually get a car loan after bankruptcy from a sub prime lender – unless your credit score is less than 500.
If this is the case, there is a chance that even a sub prime lender will be unable to help you. You can help this situation by doing something to improve your credit. You may not know that the only way to do this after a bankruptcy is to start over with new credit cards, pay any balances promptly, and stay on the good side of your creditors. How can you get a credit card after bankruptcy, you may ask? Simple! Apply for a secured credit card. To get one of these, you must place the amount of money in a bank that offers such a card. If you want a card with a limit of $1000, then you must put $1000 in the bank. There will also be a few fees that you will have to pay.
It might take around two years for you to build your credit back up to the point where you can say you have good credit, but it will be two years well spent, and much better than the 7 years it takes for most bankruptcies to fade away.
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It’s possible to get a loan with a bad credit, but you have to improve it first. It takes time, effort and consistency many of us lack.
Agreed, I had a bankrupcty do to my ex walking out. Leaving me with nothing. I worked many hours to try and make it and I just could n’t do it. I had to file for Bankrupcty. Well, lets not forget girls….our husbands credit follows us no matter what. No only was my credit bad from the Bankrupcty, but from the ex too. I needed a car and tried to get an auto loan. They laughed me right out the door. 473 credit score gets you nothing. Many of us are just working to put food on the table, and keep up with paying the utilities so we can provide for our children. With the economy the way it is….before long, we will be consided a 3rd world country. We are killing ourselves. Our dollar isn’t worth a hill of beans!!! Oh and all those wonderfful things they say they have to help the “single mom’s” That is a load of crap too!!