How to get a car loan after bankruptcy

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How to get a car loan after bankruptcy
Get a Car Loan After Bankruptcy

Bankruptcy isn't the end of your personal finances. There are plenty of lenders who will give you a car loan after you go bankrupt, but you might have to do some searching to find them. In fact, you can get a car loan after bankruptcy to help rebuild your credit.

Skill level:


  1. 1

    Look through your credit report for any mistakes or listings that you can dispute. You have the right to to add a note to any bad listings on your report under the Fair Credit Reporting Act.

  2. 2

    Open a new bank account if your old one was closed during your bankruptcy. You will need to have a checking account if you want to get a car loan after bankruptcy. Allow 6 months to build a history with your new bank before looking for a loan.

  3. 3

    Visit a car loan lender that is part of a large network. Fill out one application that will be listed in a large database of car loan providers. If that particular lender turns you down, there is still a chance that another one will approve you.

  4. 4

    Get a few recent pay stubs to prove your employment to lenders. If you declared bankruptcy as a result of losing your job, find a new one before you can apply for a car loan. Lenders are willing to take risks, but employment is almost always required.

  5. 5

    Ask a family member or friend to be the cosigner of your car loan. You can usually get a slightly better rate on a car loan if you have a guarantor. A cosigner might also help persuade a lender to give you a loan immediately following your bankruptcy.

  6. 6

    Keep your eyes open for refinancing opportunities to lower the interest rate of your car loan. You'll probably have a higher than average interest rate if you get a car loan less than a year after your bankruptcy closes.

Tips and warnings

  • Work your new car loan into your monthly budget before you accept it--it's essential that you can afford it.
  • Make your loan payments on time to help rebuild your credit.
  • Your first car loan after bankruptcy may need to be used to buy an inexpensive used car instead of a new one.
  • Don't lie on your loan application about your bankruptcy. The lender will see it on your credit report and then reject you for not telling the truth.

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