Completion of chapter 7 bankruptcy discharge might be a moment of relief for the bearer and a reliever of debt burden at the same time, however, it might also be the time when one would not be comfortable to apply for another loan, fearing rejection. As far as car loans are concerned, bankruptcy hardly pays any heed to the previous record, especially bankruptcy. In fact, car loan is one of the most plausible ways to rebuild credit score and get rid of a black spot on the credit history.
Bankruptcy car financing is offered by many auto finance companies for new as well as used cars and other vehicles. If bankruptcy is discharged within a year’s time, auto finance lenders and dealers with in-house financing might be a bit dicey about lending a car loan. However,
As the Chapter 7 bankruptcy marks the credit score for seven years, lending to such individuals might not be a decision by most of the lenders.
However, if a borrower is able to get a car loan in spite of all these circumstances, and that too, from a reputable lender, it is a sound way to build back the credit score by making timely repayments.