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After Chapter 7 bankruptcy, can I still get a car loan?
I just got out of Chapter 7 bankruptcy and I need a vehicle. Can I still get a car loan?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m sorry to hear about your bankruptcy, but hopefully your troubles will soon be behind you. I’m happy to say that you can get a
car loan
after Chapter 7 bankruptcy. If the car you require is out of necessity, getting a car loan won’t be impossible, but it will certainly be difficult. Many lenders are reluctant to work with people who want to take on debt immediately after Chapter 7. And since your score may have taken a severe hit, you’re looking at lenders that have sky-high interest rates.
For example, those who have a credit score below 600, which is common among those who have filed for bankruptcy, have an average car loan interest rate of 10.36% for new cars and 16.4% for used cars. That’s some pretty significant interest. Therefore, you should shop around as much as possible to see if you can find a decent rate.
Furthermore, you need to have enough cash to pay for maintenance, gas, and car insurance. If you can find a willing lender, make sure that you also shop around for car insurance to save the most money. Use the
Jerry
app to compare dozens of rates from some of the top-ranked insurance providers around.Best of luck with everything!
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- Gregory R.
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