Even though filing bankruptcy can provide you with financial relief, it can leave you in a bad situation as well. Getting approved for loans, such as auto loans, can be difficult or impossible when you have filed bankruptcy. However, you still need a vehicle, so you might be wondering what you should do. You do have a few options; one is to look into leasing a car.
Even though lenders still look at things like your credit score — and yes, whether or not you have filed bankruptcy in the past — when determining if you qualify for a lease, since loan amounts are often smaller, it is sometimes easier to get approved for a lease than a car loan.
Work On Your Credit Score
Even though your bankruptcy will be on your credit report for years to come, there are things that you can do to improve your score and improve your chances of getting approved to lease a car. For example, there are some credit card companies out there that will work with people who have filed bankruptcy in the past. Taking out a credit card and using it responsibly can help you build up your credit, which can help you get approved so that you can lease a car.
Shop Around for Lenders
Another thing that can help you get approved to lease a car after bankruptcy is to shop around for lenders. Different lenders have different requirements, and some are a lot stricter than others. Working with a “second chance” company that has experience in working with people with low credit scores and previous bankruptcies can help.
If you get turned down when you first apply, don’t give up just yet. In some cases, going to another dealership can help. Different dealerships work with different lenders, so even if one dealership isn’t able to help you, you might find that another one will be able to help you easily.
Choose the Right Car
When shopping around for a car to lease, it’s important to keep an eye on pricing for a few reasons. First of all, you probably filed for bankruptcy because you were in a bad financial situation and wanted to make things better. Therefore, even though it can be easy to be tempted into driving a fancy, shiny car off of the lot if you are able to get approved for it — especially if you were nervous about not getting approved because of your bankruptcy — you’ll probably want to choose something affordable that will fit easily within your budget.
Additionally, you should think about cost when trying to get approved. It can be harder to get approved for a lease loan of a higher amount, even if you have good credit. If you have filed bankruptcy, it can be even harder. Choosing a more reasonably priced vehicle can make things much easier for you.
If you have filed bankruptcy and are in need of a vehicle, you might be concerned that you won’t be able to buy a car. If you’re in need of a vehicle, however, you do have options. For example, consider going to a local dealership and inquiring about leasing a car. You might just find that it’s the best option for you when you are in this situation.