getting a auto loan while going through bankruptcy

Can I Get an Auto Loan if I’m Going Through Chapter 7 or Chapter 13 Bankruptcy?

Yes, it is possible! Guidance is key, and Easterns Automotive is here to help. If you are a Virginia or Maryland resident that has recently filed for bankruptcy, it is important to know that you have auto loan options. You may be able to purchase a newer car with a lower payment before your bankruptcy discharge. Plus, you will have the opportunity to add a factory or extended warranty that may help you avoid unforeseen repair expenses that could derail your budget.

The best way to financially recover from bankruptcy is to rebuild good credit. This can be difficult if you can’t find a lender to approve you for loans. At Easterns Automotive, we’re committed to helping Washington, DC and Baltimore residents get the vehicles they need even during or after bankruptcy.

How Do I Get a Car Loan When Filing for A Bankruptcy?

Many bankruptcy car buyers find it beneficial to get a new auto loan prior to discharge instead of reaffirming their existing car loan. Bankruptcy laws allow you to walk away from your current loan and replace it with a newer one, which is why you should initiate your new car loan sooner rather than later.

You may be thinking that there are no lenders that will approve you for financing after filing for bankruptcy. This isn’t the case! At Easterns Automotive, we work with dozens of lenders to increase the chance we can find a great auto loan for car buyers who have credit problems. Working with this many lenders, allows us to give our car shopping customers options on rates and terms. You may find you qualify for more auto loans than you realize!

When working with our team at Easterns, bankruptcy filers will have the opportunity to participate in our Fresh Start Vehicle Loan Program. Some of the features of this special bankruptcy auto loan program include:

  • Financing for up to $40,000
  • Requires little to no money down
  • Available to people with open or recently discharged bankruptcies
  • Eliminate negative equity and allows you to re-establish your credit
  • No minimum credit score required
  • A true fresh start!

What Does “Your Job Is Your Credit” Mean?

Credit problems happen for all kinds of reasons, and we understand that going through bankruptcy or having less-than-perfect credit doesn’t mean you aren’t a responsible person. That’s why we look at other factors, including your job history, when determining your loan eligibility.

Will Getting a Car Loan Hurt or Help My Credit Score After Bankruptcy?

Qualifying for an auto loan will affect you in two primary ways. Lenders will perform what are known as “hard inquiries” with the three credit bureaus to check your credit risk and determine your loan eligibility. A single hard inquiry won’t have much effect on your credit score, but multiple hard inquiries in fast succession can have a negative impact on your credit score.  

Any damage done by a hard inquiry is more than made up for by the benefits of making payments on time. The best way to build your credit score is qualifying for financing and then making payment on time and in full.

If you want to begin rebuilding your credit score after bankruptcy, paying your debts on time is a great way to do it. Unfortunately, this path to credit repair is difficult when no lenders will give you credit due to your bankruptcy. At Easterns Automotive, we pledge to look past your bankruptcy and find a workable lending solution for your situation.

We Can Help You Get a Car Loan After Filing for or Discharging Bankruptcy

At Easterns Automotive, the Baltimore and Washington, DC dealership where your job is your credit, you can expect to get friendly, low-pressure assistance with your auto loan and car purchase. Call us at 877-867-0641 or visit a location near you to learn more.