How to 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.

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.

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.

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.

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.

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.

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.


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.

Cite this Article A tool to create a citation to reference this article Cite this Article

About the Author

This article was created by a professional writer and edited by experienced copy editors, both qualified members of the Demand Media Studios community. All articles go through an editorial process that includes subject matter guidelines, plagiarism review, fact-checking, and other steps in an effort to provide reliable information.

Try our awesome promobar!