Bankruptcy has been used by many Ohio residents to help get them out of serious debt. It can be extremely beneficial to those that are in too much debt and have no means to get out on their own. With that being said, it is a not something to jump into without careful consideration. Filing for bankruptcy can severely damage your credit score and it will take time to rebuild, but we can help you get started with Ohio vehicle financing after bankruptcy.
Rebuild your Ohio Credit Score after Bankruptcy
You have options to rebuild your credit in Ohio, but the following are the two best and fastest ways to get back to a good credit status.
Secured Credit Card
A secured credit card is obtained through a bank or credit union. You give them cash in the amount you want your balance on your credit card to be. Don’t max it out, instead, make small purchases – like gas or groceries – and pay off the entire balance each month. This shows timely payments to the credit bureaus and will result in your credit score rising.
After Bankruptcy Auto Loans
An auto loan is an installment loan - meaning you pay a fixed amount for a fixed amount of time. As long as you make these payments on time and in full your credit score will raise accordingly. Open bankruptcy car loans in Ohio are available, but they are harder to obtain so we suggest being discharged before applying.
Subprime Lenders in Ohio
Some banks and credit unions have lessened their requirements for auto loans, but in many cases they will shy away from bankruptcy clients. Your best bet to get approved is to use an Ohio subprime lender. These are lenders that specialize in bad credit auto loans; including bankruptcy and repossession.
Most lenders will require a down payment for bankruptcy auto loans, so it is recommended to have money saved up being applying. Once you are ready to apply you can do so using our online application to see if you are preapproved.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.
