We get it. Bankruptcy is a scary word and it’s a big life event. It’s also the beginning of a new chapter and a great opportunity to reinvent your credit profile. Dick Says Yes has helped thousands of customers who have been in or are currently in bankruptcy purchase a vehicle they love at a payment that is comfortable and makes sense.
You deserve selection, honesty, and respect when making this purchase and your bankruptcy should have nothing to do with those basic car-buying rights. We specialize in helping customers who are currently in chapter 7 or chapter 13 bankruptcies as well as those who have already been discharged or may have been dismissed. At Dick Says Yes in Portland and Vancouver, we work with challenged credit well, but we do bankruptcy credit better than anything.
Our proven method of working with customers, creditors, and lenders to help secure the absolute best-financing package typically leads to same-day approvals without transparent numbers. You can shop thousands of cars online, get approved for the vehicle you want, and let us quote you an exact payment with full disclosure of interest rate, term, monthly payment, etc., all from your home or work.
There are no hidden fees and the process is completely safe and secure. Feel more comfortable meeting in person? Come into either of the Dick Says Yes showrooms and work directly with a credit consultant so you can actually drive the car you are interested in before determining all of the numbers. Just know that when it comes to buying a car during or after a bankruptcy, Dick Says Yes!
No matter what life throws your way, we can help!
We get it. Bankruptcy is a scary word and it’s a big life event. It’s also the beginning of a new chapter and a great opportunity to reinvent your credit profile. Dick Says Yes has helped thousands of customers who have been in or are currently in a bankruptcy purchase a vehicle they love at a payment that is comfortable and makes sense.
You deserve selection, honesty and respect when making this purchase and your bankruptcy should have nothing to do with those basic car-buying rights. We specialize in helping customers who are currently in chapter 7 or chapter 13 bankruptcies as well as those who have already discharged or may have dismissed. At Dick Says Yes, we do challenged credit well, but we do bankruptcy credit better than anything.
Our proven method of working with customers, creditors and lenders to help secure the absolute best financing package typically leads to same-day approvals without transparent numbers. You can shop thousands of cars online, get approved for the vehicle you want and let us quote you an exact payment with full disclosure of interest rate, term, monthly payment, etc., all from your home or work.
There are no hidden fees and the process is completely safe and secure. Feel more comfortable meeting in person? Come into either of the Dick Says Yes showrooms and work directly with a credit consultant so you can actually drive the car you are interested in before determining all of the numbers. Just know that when it comes to buying a car during or after a bankruptcy, Dick Says Yes!
No matter what life throws your way, we can help!
What do you need to bring with you for approval?
To obtain a car loan approval at a dealership, you typically need to bring the following documents:
Valid Driver's License
Verify your license has not expired, revoked or suspended and ensure the address listed on your license is current and matches your residence.
Proof of Insurance
Take care to include the name of your agent and a reliable contact number. Adding a new car to your policy won't be necessary until approved.
Proof of Residency
A recent bill for utilities, such as water or electric, is sufficient proof so long as your name is listed and matches the address given.
Proof of Employment
A recent pay stub stating your year-to-date earnings is sufficient. Self-employed individuals must provide two years of prepared tax returns.
Personal References
A reference can include anyone that knows you personally, such as a family member or friend, Include full names, addresses and phone numbers.
Phone Number Verification
Any phone number provided must be currently in service and under the applicant's name. Prepaid cell phone numbers will not be accepted.
Yes, you can get a car loan after bankruptcy. However, due to the financial difficulties that often cause bankruptcy, lenders who do approve you will likely charge a high interest rate. It's advisable to search for a lender that works with Chapter 7 or Chapter 13 bankruptcies. These lenders may be considered subprime, meaning they work with borrowers who have weaker financial histories.
It can be challenging to buy a car while in active bankruptcy, and many borrowers need a court's permission to take out additional loans during that period. Whenever possible, it's best to wait until the bankruptcy filing is finished before applying for a loan.
Generally, a Chapter 7 bankruptcy takes four to six months to complete, while a Chapter 13 bankruptcy can take up to five years. Even after the bankruptcy filing is discharged, some lenders may require you to wait an additional 12 to 24 months before applying for an auto loan.
Lenders tend to be cautious with borrowers who have experienced bankruptcy, as they want to make sure their investment is safe. However, this is not the end of the road. Bankruptcy does leave a mark on your credit score, which is a golden ticket for lenders to know how trustworthy you are. A shining credit score can open the doors to the most attractive interest rates. Although bankruptcy can dim this score for a while, you still will have opportunities available to you.
A Chapter 7 bankruptcy can linger on your credit report for up to 10 years, while a Chapter 13 bankruptcy stays for a maximum of seven years. Once these are expunged from your credit report and your score rebounds, securing approval for an auto loan becomes substantially easier.
Here are a few strategies to help you qualify for a car loan after bankruptcy:
Explore Options with Subprime Lenders
Subprime lenders specialize in accommodating borrowers who have lower credit scores or have experienced bankruptcy. According to the Consumer Financial Protection Bureau (CFPB), engaging with a subprime lender could be a viable option if your credit score ranges between 580 and 619. While approval is not guaranteed, subprime lenders often have more lenient eligibility criteria compared to traditional lenders.
Consider Your Local Credit Union
Credit unions operate on a different set of standards compared to conventional banks, and they are often more flexible. We recommend contacting your local credit union to inquire about their car loan options for individuals who have undergone bankruptcy. If you are already a member of a credit union, this affiliation may positively influence the loan approval process.
Focus on Improving Your Credit Score
Improving your credit score is instrumental in enhancing your eligibility for an auto loan following bankruptcy. We advise clients to prioritize timely and complete payments of credit card bills and other loan installments. Additionally, utilizing a smaller portion of your available credit can positively impact your credit score. For comprehensive guidance on credit improvement, consider consulting a nonprofit credit counseling agency.
Compare Offers from Various Lenders
It is prudent to evaluate offers from multiple lenders to identify the most favorable terms for your auto loan. However, exercise caution and critically assess the terms of each offer. Some lenders may advertise “guaranteed approval” for auto loans, but these offers often come with significantly higher interest rates and monthly payments, particularly for borrowers with compromised credit.
More Questions? Talk to a Financing Expert.
More Questions? Talk to
a Financing Expert.
Can I buy a car after Chapter 7 Bankruptcy?
In this blog, we explore the challenges and strategies for buying a car after filing for Chapter 7 bankruptcy, highlighting the importance of rebuilding your credit, shopping around for lenders and car loans, and saving for a down payment.
Where can I get a car after bankruptcy?
Wondering if you can get a car loan after bankruptcy? The short answer is yes, but there are a few things to know about the process.
5 Mistakes to Avoid When Financing a Car with Bad Credit
In this blog post, we outlined five critical mistakes to avoid: not checking your credit score, skipping the pre-approval process, not shopping around for the best loan, choosing the wrong car, and signing a contract you don’t understand. By taking the time to understand each aspect of the car financing process, you can make informed decisions that align with your financial goals. There are lenders and dealerships, like Dick Says Yes, that specialize in assisting individuals with less-than-perfect credit. If you need help, reach out to the Dick Hannah Team for more information.
We pride ourselves on going the extra mile…
And We do more than help you buy Used cars after a bankruptcy… a lot more.