A bankruptcy filing stays on your credit report for as long as 7-10 years. While having most or all of your eligible debts wiped away or at least caught up on feels great, that bankruptcy sitting there on your credit report is a big red flag to many lenders when you try to get a new loan or line of credit. How are you supposed to improve your credit history if you can’t take on any new debt? It can feel like you’re stuck. But a bankruptcy car loan is something that could help.
While many lenders won’t work with you because of the bankruptcy on your credit report, there are other lenders out there who understand you’re making a fresh start and are willing to consider you. If you need to finance the purchase of a vehicle, a bankruptcy car loan might be the right option that allows you to not only get the vehicle you need, but also to make on-time payments on the loan that will be reported to the credit bureaus to show responsible use of credit and better managing your debt.
While the terms and rates on a bankruptcy car loan won’t be as good as you’d get if you didn’t have a bankruptcy on your credit report, it’s a pretty small price to pay for the chance to not only get the car you need but also start rebuilding your credit.
Related post: Bankruptcy Fresh Start Program: The What And Why
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.