If you plan to, or already have, filed for bankruptcy it is important to know you are not alone and you do have options. During this stressful time the last thing you want to think about is making any big purchases, but sometimes a reliable vehicle is needed in order to help you get back on your feet. Learning a few simple tricks can help you make the best decision when purchasing a new or used car, and keep you from spiraling into more debt.
The first and most important thing to do is gather all of your credit reports and scores together to create an organized file of all of your information. This will not only help you learn more about your own financial standing, but also prepare you for when you speak with any potential lenders. Knowing what you’re worth is half the battle of getting the best deal. Next is figuring out ways to keep payments as low as possible. Finding the right car for the right price can still be difficult, but saving up to put a larger down payment on a car, or trading in your current vehicle, is a great way to ensure your monthly payments remain low enough to lessen your risks of repossession.
People who have recently suffered bankruptcy are known to take the first deal they can grab, after all who wants to do business with them? This mistake is what causes countless car buyers to make bad deals resulting in worse debt and potentially no car at all. Do your research, figure out your worth and what your options are, and then go out and find a decent lender. For every lender who won’t do business with you, there are five more waiting around the corner to take advantage. “Buy here pay here” places carry hidden fees, outrageous interest rates, all for a less than reliable car. For some it might be the only option, but it’s not worth it if you can help it.
Lastly, always remember to pay on time. Each payment you make in full and on time raises your credit score. Anyone recovering from financial difficulty should always remember to make payments on time to ensure hard times remain in the past. After months, or years, of steady payments you may have the option to refinance your loans and in turn, lower your current interest payments. Just because you may have suffered hard times, does not mean you are trapped. Keeping informed is the simplest thing you can do to completely change your life. Get started today by completing an online application, or call us today.