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Steps to follow when trying to buy a car after bankruptcy in Hannon

Steps to follow when trying to buy a car after bankruptcy in Hannon

If you just got out of bankruptcy and need financing to buy a new car. This is usually how life happens; when you don't want things to go wrong, they usually do but there's hope.

How long ago were you discharged from bankruptcy? (This is an important question)

Your bankruptcy trustee would have given you a document. This is your official discharge from bankruptcy, and if you don't have it, you can't take on any new debts.

If you don't have this document, you should talk to your trustee about when you can get it.

Credit rebuilding the basics

Now that you don't have any debts, it's time to start building your credit again. Most lenders won't give you a new credit card right away because the bankruptcy will stay on your credit report for many years to come.

The best thing to do is to apply for a secured credit card with Capital One or another company.

This credit card works just like a regular one, but you have to put money into your account, which becomes your credit limit. For example, if you put $1,00 into your account, your credit limit is $1,000.

This card is available to everyone, and as long as you pay on time, your credit score will start to go up. You should do this right away so that your credit score can start to get better.

Creating a budget for the new to your vehicle

The cost of a car is pretty high, so you'll need to plan your budget accordingly. You won't be able to get a new car loan because you are trying to fix your credit.

Still, you can get a good used car if you meet the requirements.

Your bankruptcy would have wiped out all of your debts, except for the ones you need to pay to live. You should look at your income and figure out how much of it you can put toward the car payment each month.

Car payments can easily cost more than $750 a month, and this amount is going up as prices rise.

Besides the payment, you also have to think about maintenance, and gas prices are soaring now, exceeding $2.20per liter, so the car must be good on gas.

Once you have figured out your budget, you can start looking for loan providers. (if you can qualify for an EV loan, you don't have to worry about gas prices or maintenance again)

How to get competitive auto loans after going bankrupt

You've done what you needed to do to start rebuilding your credit. While you're waiting for that to pay off, you should look for car dealerships in your area that offer car loans to people with credit problems.

The dealerships are the only ones who can get you approved for a car loan, even after bankruptcy, but you need to be honest with them. The more transparent you are with the dealership, the better the outcome for you.

Since these dealerships are always working on car loans, they have first hand experience of what works and doesn't work in the automobile financing world. Contact the dealership now, so you can start leading live on your own terms.

When you’re ready for a car lease or loan, get in touch with the Hannon auto loan experts at Northway Ford for great deals on auto finance.

Categories: Car Loan

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