May
10
Getting a Car Loan after Bankruptcy — A Summary
May 10, 2007 |
Getting a Car Loan after Bankruptcy — A Summary. Here is a quick re-cap of the steps you need to take to get a car loan after your bankruptcy is discharged.
1. Put your house in order.
Come up with a budget and a savings plan. Make sure all of your old creditors know that you no longer owe them money. Take care of any collection notices you receive.
2. Start hoarding.
Hoard as much cash as you can — you’ll need it for a down payment, secured credit card, and as an emergency fund. Also make sure to save all of your important financial documents (paystubs, bank statements, bankruptcy docs) in a safe place because you’ll need them to get your loan.
3. Get a secured credit card.
Secured credit cards are a great way to get your credit back on track. Just make sure you don’t actually use them.
4. Buy a car.
This car isn’t going to be the car of your dreams, but if you buy it right it will help you build your credit score and you can trade it in quickly.
5. Get more credit.
Now that you’ve bought a car and you have a secured credit card, it’s time to get some unsecured credit cards and to start working with a local credit union.
6. Buy the car you want.
The goal — you can now get the car you want after your bankruptcy. If you’ve followed all of the previous steps, you will have a good credit history AND a good credit score. Buying the car, truck, or SUV you want is now firmly in your grasp.
With all of these steps, it’s important to remember a couple of things. First, save money every month. Saving money is a life skill that everyone should have. Second, remember what caused your bankruptcy and don’t let it happen again. Use a budget, avoid impulse purchases, and make sure that you can pay all of your bills even if a major catastrophe occurs.
Congratulations! If you’ve completed all these steps your credit is fixed!
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