3 Benefits Of Buying A New Car After Filing Bankruptcy
Posted on: 14 September 2018
After filing bankruptcy, it might be time to head to a dealership and buy yourself a new or used car. The two might not seem to go hand-in-hand, but buying a new vehicle after filing bankruptcy is smart for many people for these three reasons.
1. Start Improving Your Credit Score
After filing bankruptcy, you might have found yourself with a low credit score. Your score might have been low before you filed, and your credit might have taken a hit because of the filing. In order to improve your credit score, you're going to need to have loans that you are handling responsibly. A car loan can be a great way to work on re-establishing your credit score after filing.
2. Make Sure You Have Reliable Transportation
Now that you have filed bankruptcy, moving forward with your life is probably your plan. It's going to be hard to do without reliable transportation to do things like go to and from work. Buying a new car helps you get the reliable transportation that you might need in order to make a living.
3. Enjoy Something You Might Not Have Enjoyed in Years
Many people who file bankruptcy report that their lives are actually easier and less stressful after they file. Before you filed bankruptcy, you might have had a bad credit score, making it difficult for you to get approved for car loans and causing you to have to pay higher interest rates than other car buyers. Additionally, you might have really struggled to make ends meet because of all of your bills, so you might not have been able to afford a new car.
Now that you have filed bankruptcy, though, car lenders might be willing to give you a fresh start, meaning that you might qualify for better interest rates and deals on financing than you would have before you filed bankruptcy. Additionally, now that you might not have as many debts to worry about paying, you might actually have a little more money in your budget so that you can afford a car.
Now that you have been through the stress of a bankruptcy, treating yourself to something nice like a new car might be a way to enjoy something that you haven't enjoyed in years. Just make sure that you budget carefully for your purchase and that you don't get in over your head; after all, you don't want to end up in the same financial situation that you were in before you filed bankruptcy.
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