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Rebuilding your finances and credit score after filing for bankruptcy can seem daunting at first, but it is possible when you make informed choices. Buying a car after bankruptcy in Indianapolis is feasible when you enlist the help of the experts at Indy Car Financing. If you use the following tips when shopping for a vehicle post-bankruptcy, you’ll have a much easier time with your purchase.
The Reality of Buying a Car After Bankruptcy
First and foremost, it’s important to know about the most common forms of bankruptcy and how they can affect your finances. A Chapter 7 bankruptcy tends to completely erase any debt, but it can stay on your record for up to 10 years. A Chapter 13 bankruptcy requires you pay off part or all of your debt over a span of 5 years in an attempt to save your assets. With either form of bankruptcy, it makes sense to monitor your FICO score, which will often drop because of your filing. The good news is that your score will start to increase over time, which means better interest rates when financing.
What Lenders Will Expect
If you filed for bankruptcy in the recent past or you are currently undergoing proceedings, lenders will examine your financial track record. This will include everything from your mortgage payment history to any car payments you might have made prior to bankruptcy. If a lender thinks that you might have trouble making a payment, they’ll often ask you to provide a higher down payment to minimize their risk.
Do Research and Be Smart
Buying a car after bankruptcy will require you to research vehicles, explore available interest rates for auto loans, and calculate how much you can realistically afford. Even if a lender gives you an attractive rate, you don’t have to take the first offer. Shopping around will ensure you find the right loan for your situation. One smart move to consider is making a larger down payment, so that your monthly payments will be more manageable. A substantial down payment also increases your chances of landing a competitive auto loan.
Indy Car Financing Is Here to Help
For additional counseling when buying a car after bankruptcy in Indianapolis, contact the Indy Car Financing professionals at (855) 468-6215. We believe owning a suitable vehicle to rebuild your life is a chance everyone deserves. Let us help you to start your financial recovery process.