Where can I get a car loan after bankruptcy?

I just got a new job. I need a car, so I’ll have to get a loan. I have a bankruptcy on my credit history from four years ago. Where can I get a car loan after bankruptcy?

Answer
Congratulations on your new job! There are many places you can look for lenders for a car loan, even with a bankruptcy on your credit history.
You can apply to any credit unions or banks you’re a member of if you’ve been able to:
  • Rebuild your credit
  • Save up for about 20% of the down payment to pay out of pocket
  • Can find a cosigner with a credit score of 660 or more.
If not, you can still apply with banks, credit unions, and with dealerships or online, but you’re more likely to end up with high-interest rates. You can also check buy here, pay here dealerships.
Buy here, pay here are dealerships with in-house financing. Because of this, they don’t need to check your credit score and tend to focus on people with bad credit, no credit, or bankruptcy on their credit history. However, the loans they offer are expensive. Always research and try other options before resorting to this style of loan.
If you cannot get a good rate or are unhappy with your terms, know that you can always refinance.
An easy way to refinance is with the Jerry app. We’ll make sure you aren’t overpaying and help you switch over to a new lender. On average, people who refinance save $85 a month.
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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