When your bankruptcy case is discharged and over, you might think you wouldn’t need a bankruptcy car loan to buy your next ride, but chances are good you will still need one.
Remember that after your bankruptcy is fully discharged, the bankruptcy will still be listed on your credit report for 7-10 years. Many lenders will see it as a red flag and won’t consider you for a car loan. Other lenders might say they will only consider you after at least two years have passed after your bankruptcy discharge, and they still might reject you at that time as well.
If your bankruptcy has been discharged but you can’t find a regular lender who is willing to work with you, that’s when you need to consider applying for a bankruptcy car loan. Lenders who specialize in working with bankruptcy customers are more willing to take a chance on you, and you’ll pay a higher interest rate for them to take on higher risk. But your chances of getting the loan will be much better than with lenders who still view you as too risky even though your bankruptcy has been discharged.
Related post: Bankruptcy Car Loan Timing
At Day One Credit we are experts at finding the best possible bankruptcy car loans in order to help our customers purchase high-quality used cars. We are not lawyers, we do not give legal advice, and nothing we say should be taken as legal advice. Your first step in anything related to bankruptcy should always be seeking the advice and counsel of a qualified bankruptcy attorney.