How do I get a car loan if I have an old bankruptcy on my credit report?

Answered by Car Loans Expert Johnny on December 29, 2020

I previously went through a bankruptcy and I don't think my credit has really recovered. How can I get a loan for a car I need to commute to work?

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Car Loans Expert

If your bankruptcy is complete, then it is honestly not much different than getting a loan with less-than-good credit. Your first step should be to check your credit so you know exactly what you’re dealing with and you can dispute any inaccuracies. Most lenders will be paying more attention to previous auto loan payments than the fact that you had to file for bankruptcy. This means that if you stayed up-to-date on your previous auto loan payments before and/or throughout the bankruptcy, then it will make you look good. However, you should be prepared to make a case for yourself by taking any proof of previous on-time payments with you when you go to meet with lenders.

There are plenty of lenders and even some dealerships that are more than willing to work with people who have filed for bankruptcy; you just have to find the right one for you. Steer clear of “buy here, pay here” dealers, though. The interest rates and terms for the loans offered by those dealerships are usually unaffordable. Also keep in mind that after six to 12 months of making on-time payments, you can usually refinance your auto loan to get a lower interest rate and sometimes a lower payment.

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