Financial trouble can be some of the most anxiety-causing. Whether this is a paycheck that doesn’t quite cover the expenses for the month or something more major like medical problems or a bankruptcy, it can have a serious impact on your well-being. One common question people ask is “Can you get a car loan after bankruptcy?” Having bad credit or a history of not being able to pay dept can affect your interest rate and vehicle availability, but many people can still get a car loan. Even better, getting a car loan may even help you improve your credit over time!
Can you get a car loan after bankruptcy?
While you can get a car after bankruptcy, there are somethings you should do to get the best options.
Know Your Credit
Always check your credit report and credit score before trying to get a loan. Lenders will check these so it is good to know your own score. You can also fix any errors that you find.
Get a Down Payment
A larger down payment means less to pay interest on. While getting together enough for a down payment can be a challenge, it can help reduce what you pay in interest long-term.
Explore Your Options
Don’t go to the first lender that you find. Exploring your options to find a dependable vehicle at a loan rate you can afford can make a huge difference for your financial health.
Pay On Time
Did you know that regular payments made on an auto loan can actually improve your credit over time with the right lender? Being able to make your payments regularly shows that you are handling your credit responsibly and gives lenders more confidence in you. While it depends on the lender, and how you handle your finances, an auto loan can actually help improve your credit in the right situation.
If you are interested in getting a car loan after a bankruptcy in the Austin TX area, the Third Coast Auto Group is here to help. Be sure to contact our friendly and expert staff to get on the road to a new-to-you vehicle and improved credit today.