Bankruptcy Isn’t the End of Your Story, It’s a New Beginning

A stock photo of people looking at a used vehicle to take home.

Can You Get a Car Loan After Bankruptcy?

The lingering effects of the pandemic can be observed in many different areas of our lives. Whether it’s supply chain disruptions or generally higher prices on the most common consumer goods. The point we’re getting at is that more people are experiencing economic instability, and that can have catastrophic consequences ending in declaring bankruptcy. To be sure, bankruptcy isn’t ideal, but it doesn’t mean finding safe, reliable, and affordable transportation is impossible. So, can you get a car loan after bankruptcy? Yes, you can. Though it may require the buyer to make some compromises. Let’s take a look at a few things you might need to know.

READ MORE: Are You Still Using Outdated Financing Information?

Find Vehicle Loans Following Bankruptcy

We want people with low credit scores to understand that going through financial hardships doesn’t make them bad. Tough times come for us all and everyone at Auto Depot Sudbury understands their job is to help everyone find a car, truck, or SUV they can afford

The truth of the matter is that while it is possible to get a loan to buy a vehicle, it is likely that a new model might be out of the question and obtaining financing after bankruptcy will likely be more expensive. Our team has a lot of experience working with people in these situations and we are very confident that we can find a model in our inventory that will meet your needs, style, and most importantly, your budget.

Bankruptcy is a tool that allows people to get out from under crushing debt and start with a clean financial slate. However, that is not to say there are no consequences for seeking this king of relief. A person’s credit profile will be severely damaged. There are a few simple things people can do to rebuild their credit before applying for automotive financing that could save borrowers a little bit of money.

How Can You Rebuild Credit Before Getting a Car Loan?

There is more than one kind of debt and there are different forms of bankruptcy that will discharge those obligations. People will still have various financial obligations each month. It is important to take these obligations seriously because falling behind on bills will simply restart the cycle of debt. Take a look at a few things you can do to rebuild your credit score after declaring bankruptcy.

  • Pay all of your bills on time: This means that when the bills for utilities, cable/internet, etc., are due, they are paid in full and on time. While doing this isn’t the fastest way to rebuild credit, it will be a positive sign for lenders that their money is being managed responsibly.
  • Get a Post-Paid Cell Phone: Getting approved for a cell phone contract can be helpful for working back toward a strong credit profile. Again, making sure you can afford the payments each month is the most crucial element of this strategy. 
  • Obtain a secured credit card: By saving up a few hundred dollars for a downpayment, future borrowers can apply for a secured credit card. Making regular, on-time payments on the card will help rebuild credit quickly.
  • Use available credit responsibly: Be very careful about applying for too many lines of credit too fast. There should be several months between each application.

Make an appointment with an Auto Depot Sudbury financial expert today if you need help finding safe and affordable transportation after experiencing bankruptcy.