PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How do I get a car loan after bankruptcy?
I had to file for bankruptcy. During it, most of my assets were sold to pay off my debts, including my car. My bankruptcy was discharged last year and now I need a car for work. How do I get a car loan after bankruptcy?
Lauren Smith · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congratulations on your bankruptcy discharge! Bankruptcy is difficult, but a discharge is a step forward in turning your credit around. To get a
car loan after bankruptcy
, you’ll want to follow the same recommendations for a person with bad credit.You’ll want to:
- Know your credit score: Your credit score is a determining factor for your loan’sAPRor interest rate. A score of at least 660 will give you a better rate. That said, The bankruptcy will stay on your credit history for seven to ten years, meaning it could take time before your score rebounds.
- Apply with multiple lenders**: Check with several lenders, including banks, credit unions, dealerships, and online lenders. Looking into lenders who specialize in loans for those with bankruptcies is also a great idea.
- Have copies of your discharge papers for lenders: Most lenders will want to confirm your bankruptcy discharge.
- Find acosigner: Finding a cosigner can improve your chances of being approved for a car loan. You may also receive a better interest rate with a cosigner.
- Budget for your downpayment: The more money you can afford to put down at the start, the less risky you are to a lender. A rule of thumb is to shoot for 20% of the total price.
While you may not get the best rate immediately following a bankruptcy discharge, you can still find a loan that works for you by planning your purchase and following these recommendations.
The road of car ownership can be expensive, but the
Jerry
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies