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.