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?

Answer
Congratulations on your bankruptcy discharge! To get a car loan after a bankruptcy, there are several things you’ll need to do.
  • 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.
  • Get a cosigner: 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.
Before you get the keys to your car, make sure you have the right policy to protect it! You can ensure you’re getting the best deal with the Jerry app. With Jerry, you can compare 50+ top insurers to ensure you’re getting the coverage you want for the best price. The average Jerry driver saves $879 a year on car insurance.
Lauren Smith
Answered on Nov 30, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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