How do I get a car loan after a bankruptcy discharge?
I spent the majority of my bankruptcy proceedings taking public transit. I want to get a car now that I’ve finally gotten my discharge. How do I get a car loan after a bankruptcy discharge?
Research lenders: When researching lenders, don’t leave any stone unturned. Your attorney may have recommendations on lenders who work with people who just had their bankruptcy discharged. However, apply with your local and national banks, any credit union you’re a member of, online, and dealerships as well.
: If you’re having issues getting approved for a loan, consider finding a cosigner. A cosigner will reduce your risk as a borrower and typically gives you better terms and conditions.
Make a larger downpayment: Downpayments of 20% or more of the car’s value will also give you a better chance of being approved for a car loan. The more money you put down, the less risk for the lender.
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