Can I buy a car after debt settlement?

Date Posted: April 2, 2023
By: Maggie Marques

Can you buy a car after debt settlement? Buying a car is a significant investment, especially for somebody who just went through debt settlement. It is not an impossibility to own a car, but there needs to be a lot of considerations and planning before you can get behind the wheel.

Can I buy a car after debt settlement?

Before shopping for a car, take a good and honest look at your budget. Don’t only focus on the cost of the vehicle but make sure that you also consider the other expenses like insurance, maintenance, and gas.

Consider also your lifestyle and the size of your family. Do you and your family need a bigger car? Knowing these details will help you decide how much you can afford and help you from overspending.

How to buy a car after a debt settlement

Here are some of the things you can do to help you get the car you need after settling your debt:

  1. Check your credit score – you may think something other than this is essential, but a good credit score will give you better interest rates and reasonable loan terms, saving you money in the long run. To improve your credit score, you need to do the following:
    • paying your bills on time
    • disputing any errors on your credit report
    • reducing credit card debt
  1. Shop for the best deals – having at least three options is always best. Consider shopping around for new and used cars. Coming out from debt settlement may make you feel that your choices are limited, but you can always make the best out of it by researching your options. Sales and promotions may be available for you if you shop around.
  2. Financing options and considerations – now that you’ve found the car you want and know the budget range you can afford consider your financing options. A good credit score will give you a better chance of getting a bank or credit union loan. But if you need a good credit score, you can look for a co-signer or buy-here-pay-here dealership. Always remember to read the fine print and understand your contract before signing.

Buying a car after debt settlement may seem intimidating, but you can. Evaluate your budget, improve your credit score, and research your best options to start your journey to buy a car after debt settlement.

Need some help with your debts? We’re here for you!

Get Free Debt Assessment

Recent Articles

Some of the articles you can read to help manage your finances

Finding Trusted Debt Relief Companies in Illinois
Posted on: April 1, 2024

Finding trusted debt relief companies in Illinois need not be […]

Read more
Exploring Debt Relief Solutions in Illinois
Posted on: March 23, 2024

Exploring Debt Relief Solutions in Illinois is the right way […]

Read more
Navigating Debt Relief Laws in Illinois
Posted on: March 22, 2024

Navigating debt relief laws in Illinois need not be a […]

Read more