Many readers have written in asking us: how long after bankruptcy can i get a car loan?
The length of time that you have to wait to get a car loan after your bankruptcy is discharged depends on several factors: income, deliquency, current use of credit, and down payment.
What Lenders Will Consider
First among those is whether you have a steady source of income. Lenders will be stricter about your income immediately after your bankruptcy, but will relax as time passes. Next, lenders will look to see if you are delinquent on any debt that is not covered by the bankruptcy. Third, lenders will look at whether you have secured any other type of credit since your bankruptcy and how you are using that credit. Lastly, the amount of your down payment will be considered. If you are able to put more than twenty percent down, your chances will be better.
If you are strong in each of these categories, many lenders will allow you to finance a car as soon as your bankruptcy has been discharged. Go here to apply online for financing from such a lender. The application takes less than three minutes.
Financing Alternatives for Post-Bankruptcy
Having said that, there are lenders who specialize in bad credit, including a recent bankruptcy. You need to be aware that many of these are buy-here-pay-here dealers. These types of loans are rarely reported to the credit agencies, so your credit score will not improve even if you pay the note in full. With a little research, you can find a reliable lender who will report the loan to the major agencies, helping you to rebuild your credit.