Everyone knows that things can get tough sometimes. Debt ratios have been high on average and even though the economy has recovered very well in the last two years, many are still getting life back on track financially. It was no surprise that starting in 2008 we saw a dramatic increase in bankruptcy filings. A bankruptcy can take a long time to recover from but doesn’t have to be the end of your life as far as your finances go. You can still get a car loan after bankruptcy if you follow some simple steps.

1. Whatever you do, stay on track! now that you’ve discharged most of your debt, be responsible. Just because your bankruptcy is discharged and many debts are out from under you, it doesn’t mean you can go out and spend a bunch of money. The time to rethink your spending plan is now. The last thing a lender wants to see is bad credit after a bankruptcy, this shows a pattern that banks will avoid.

2. Re-establish credit. You can’t build back your credit with no open credit. You need to get a loan.  If you are going to pay cash for everything you ever buy in the future you still need good credit. Credit checks are performed on everything from getting car insurance to applying for a job so you need it. Usually, the biggest influences on credit are a mortgage followed by a car loan. Since you likely won’t be able to get a car loan right away, get a car loan.

3. Find a dealer who has special programs for people that have had a bankruptcy. Not all dealers have special finance programs but most will pretend they can help everyone. A car dealer is a business, they SELL cars. If they can have a crack at it they will. If you apply at a dealer that does not have programs for people that have had a bankruptcy, they may send your application out to every bank they have only to get your application declined; not good. If you get too many inquiries, many lenders may turn your application down even though they have special programs for people out of bankruptcy. You need to find a dealer that has a special finance department that has experience with situations like yours. New Start Auto Loans has gained partnerships with dealers that have very aggressive finance programs available and finance managers that understand how bankruptcy works.