Vehicle Financing After Bankruptcy

Vehicle financing after bankruptcy is a difficult but possible process. Since vehicles are secured loans, meaning that if you default on the loan by not making payments, the vehicle will be reposed to pay down what you owe, it is quite possible to secure them even with bad credit. Yet, it does matter what you have done since you filed bankruptcy. In fact, purchasing a vehicle can be one of the best things that you do after you file.

The Benefit Of Investing In A Vehicle Now

When you file bankruptcy, your loans are discharged which gives you a clean slate to start building from. While it is difficult to do this, especially right away, within three to six months of filing it is likely that you will begin to receive offers for new credit card loans and other loans even vehicle loans. These will be some of the most expensive loans in terms of interest rates, but they are an ideal investment because they help to reestablish your credit abilities.

How To Qualify For These Loans

There are several things that you can do to qualify for vehicle financing after filing bankruptcy.

• Have steady, verifiable income.


• Make all payments on loans that you do have, especially those that are secured like other vehicle loans or mortgages that you kept. If you discharged a vehicle, it is likely that this will work against you.


• Make a down payment on the purchase. Even getting together just a few hundred dollars can make a considerable impact on qualifying.


• Use a cosigner to help you to qualify for the loan.

These things can help you to qualify for vehicle financing after bankruptcy. Securing this type of loan and managing it well after you get it, can help you to rebuild your credit to a positive level.