Bankruptcy in your Past? A Car Loan May Still be PossibleMay 4th, 2020
Bankruptcy is often the direct result of divorce, job loss or illness. These unfortunate, and unavoidable life events can negatively impact your good credit by missing a few payments or needing to use more credit than you may have had to in the past, potentially racking up a higher debt ratio.
A Car Loan is one of the strongest forms of credit that can help you to improve and rebuild your credit rating. If you have had to file for bankruptcy for loan protection in the past, whether it’s due to any of these traumatic life events or not, we may be able to help you recover and repair your credit with a car loan.
When you have suffered from bad credit, establishing a new source of credit is important. Ironically, the only way you can start building your credit, is by obtaining new forms of credit. A car loan can help. One of the preferred methods of demonstrating good credit habits is with an approved car loan from a reputable lender.
If you still have active credit cards or loans, continue paying them on time. The same thing goes for accounts that aren’t reported to the credit bureaus. Paying existing credit payments on time and consistently gradually increases your good credit back up.
High outstanding debt can affect a credit score, keeping them low can improve your score. This can be applied to a car loan as well, ensuring your car loan fits with your current income and budget can help you rebuild your credit faster.
By having a mix of different credit products, such as a credit card, car loan and line of credit (just remember to keep the amount being borrowed to 35% or less), you will improve and rebuild your credit faster than by just one source of credit alone.
Call me to apply for your car loan after a bankruptcy today! #CarLoansJen 519-991-8006