Filing for a car loan after bankruptcy sounds impossible, but it can be done. You’ve been through the wringer with the process and all the stress and paperwork that goes with it, and now you need a new car. Wondering what to do if your credit is in shambles but you want to finance a new vehicle? Relax. Here are some steps you can take and services out there that can help!
Think Things Through
First of all, stop for a moment and think about whether filing for a car loan is worth it. We all love nice new cars, but your focus should be on buying something reliable that you can really afford. New cars are a terrible investment. In fact, they depreciate 20 percent the second you drive it off the lot. So, ask yourself how much money you really want to spend and whether you really need to commit to a loan.
While you’re at it, be sure to do your research to make sure the vehicle you want is going to perform for the long haul. You don’t want something too old or with too many miles on it, so you need to balance cost with capabilities. Online resources like Kelley Blue Book’s kbb.com, Consumer Reports, and others can help you find smart choices in the $10,000 to $15,000 price range. You can utilize online calculators like Bankrate’s auto loan calculator to compute what your car payment will look like, with interest.
Rebuild Your Credit
You probably already have this on the brain, but before even contemplating a loan, you need to have reestablished the foundation of your credit via secured or unsecured credit cards and a healthy payment history. Even if the interest rate is sky-high because of your credit rating or if the bank requires an account deposit first, this is a worthwhile endeavor because slowly, but surely, you’ll earn back a stronger credit score as you demonstrate a good credit history.
If you’re interested in filing for a car loan after bankruptcy, know that it’s possible. Stay focused on the process of communicating with finance departments at your local dealerships and providing information only after they’ve given you information on the rates and payment plans available to you. In some cases, utilizing payday loans, title loans, and cash advances can have their advantages. CashMax can help ascertain if any of these solutions are right for your situation. So, it’s time to get started. Congratulations on taking charge of your financial future!