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Can I get a car loan after bankruptcy?
I need to get a car. I have been working on my credit score, but having a bankruptcy on my history has me concerned. Can I get a car loan after bankruptcy?
Lauren Smith · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
While a bankruptcy will stay on your credit history for several years, you can get a car loan after your
bankruptcy
is finalized. Depending on which type of bankruptcy you filed, it will stay on your credit history for seven to ten years. Because of this, it can limit your options with lenders and lead to higher interest rates.
To avoid higher interest rates or less favorable terms and conditions, it helps to have a cosigner. A cosigner is a trusted person in your life with good credit willing to sign onto the car loan with you. Ideally, they should have a credit score of 660 or higher.
If you can’t find a cosigner but have some savings to put towards a car, this can help. A
downpayment
of 20% of the total price of the car can also get more lenders to open their doors for you. But remember only to pay as much as you can afford. Should neither of these be viable options, be sure to shop around with various lenders. Some lenders specialize in loans for those with lower credit scores or bankruptcies.
That said, even if you get a less favorable loan, you have the option of refinancing.
If you’re looking to refinance your vehicle,
Jerry
can help. Jerry compares offers from multiple lenders to make sure you never overpay for your loan. 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.
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