When can I apply for a car loan after bankruptcy?

My bankruptcy is getting discharged in a week. I'm very excited, and I'm ready to start planning my future. I don't need a car loan right now. I still have a reliable car, but when can I add it to my future financial plan? When can I apply for a car loan after bankruptcy?

Answer
Congratulations on the discharge! There are no set rules for getting a car loan after your bankruptcy is over. You can get a car loan at any time, but if you want the best deal, it’ll be helpful to wait until it falls off your credit history and you’ve built up your credit score.
How long bankruptcy stays on your credit history depends on the type of bankruptcy you filed. For example, chapter 7 bankruptcy will remain on your record for ten years, while chapter 13 will be seven years.
You will also want to rebuild your credit score. It’s a slow process, but by paying your bills on time and staying on top of your finances, you can repair it. You want to shoot for a credit score of 660 or higher for the best rate on a car loan.
If you need a car loan before you rebuild your credit score or your bankruptcy falls off your report, then you should consider:
To help you start saving, you can work your way up to a 20% downpayment and make sure you’re getting the best deal with your car insurance. You can compare 50+ top insurers with the Jerry app. On average, our users save $879 a year on car insurance!
Lauren Smith
Answered on Dec 01, 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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