How to Buy a Car After Filing Bankruptcy

You’ve filed for bankruptcy and things seem to be going well without creditors harassing you. You haven’t taken on any new debt, but eventually you will need a new vehicle. Unlike your home, your vehicle will need to be replaced at some point during or after your bankruptcy. Here’s what you need to know about buying a car after bankruptcy.

Establish Good Credit

As soon as your bankruptcy has been completed, it’s critical that you establish good credit with a secured credit card. A secured credit card allows you to put a deposit down and will extend you credit in the amount of that deposit. Now, you’ll still be charged interest rates and annual fees for this service. But a secured card is one of the only ways to establish good credit after a bankruptcy. You’ll want about six months of good credit history on your card before shopping for a vehicle, so it’s important to get the card as soon as you can after your bankruptcy.

Shop for an Affordable Deal

Don’t wait until the last minute to get a car if at all possible. If you’re forced to make a quick decision on a car, you might not get the best deal. If you suspect you’ll need another vehicle in the near future, start looking around now. A new car is probably out of the realm of possibility for you after a bankruptcy, but you don’t necessarily have to go bottom of the barrel either. Think about it this way — you could purchase a $5,000 car that you’ll only be able to drive for 3 years and be in the same situation as you are now, or you could spend twice that on a car that will last you 10 years.

Need to Buy a Car After Bankruptcy? Consult an Experienced Lawyer

Purchasing a vehicle after a bankruptcy can be challenging if car dealerships and lenders won’t extend you any credit. Don’t despair — you can learn more about how to build your credit after bankruptcy and what steps you can take to become financially secure after a bankruptcy discharge by talking to a seasoned lawyer. Call the Law Office of Howard Tagg for a consultation today at (903) 730-6366.

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