Will a bank give me a car loan if I was delinquent on a personal loan?

I was delinquent on a signature loan a year ago, but I've since paid it off. Can I still get a car loan if I was delinquent on this old account?

Answer
Since you’ve paid off your delinquent loan, chances are the bank will be willing to work with you on a car loan, provided you have maintained a good rapport and been a model customer since then. The only way to know for sure, though, is to ask.
Most lenders will be candid with you. If you aren’t qualified, they’ll let you know why, what you need to do to get qualified, and if adding a cosigner would get you approved.
Unfortunately, some lenders might see the derogatory mark on your credit score and decide to deny you—especially online lenders who use an automated system to assess creditworthiness. In this case, you may want to keep your debt utilization to a minimum, pay off any other delinquent accounts, and try again.
If you’re going to finance a car, remember that most lenders will require you to purchase full-coverage insurance. Use the Jerry app to compare dozens of competitive quotes and find a policy that fits your budget.
Eric Schad
Answered on Oct 20, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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