Bankruptcy can make your financial situation that much more difficult: it can be extremely hard to get a car loan after bankruptcy, let alone less important things, such as a credit card or a cell phone. Bankruptcy can do a lot of damage to your credit rating, and unfortunately, it can happen to even the most responsible of people. An injury, lawsuit or medical diagnosis can cause job loss or an unexpected influx in bills and fees -- or both -- leaving you unable to handle the surmounting expenses. But regardless of whether or not your bankruptcy was the fault of external circumstances or just poor money management, sometimes banks and lenders are uninterested in the reason: they just see you as a bad risk.

If you want to get a bad credit car loan, it's necessary to convince your potential lender that despite your poor credit history, you are a trustworthy borrower who will pay your bills in full and on time. That can be difficult to achieve, but it is possible. If you don't know how to get auto loans with bad credit, you would be surprised to find that it's not as hard to achieve as you may think. Read on to learn more about how to get a car loan after bankruptcy.

Tips to Get a Bankruptcy Auto Loan

You should know that when looking to get an auto loan after bankrupty, your lender is going to base their rates upon what your credit score is. Besides your bankruptcy, it's also going to have a big impact on whether or not they'll be willing to lend to you at all. Most auto loan lenders prefer to lend to people who have a credit score of 600 or higher. You can get an auto loan with bad credit, but banks and financial institutions don't like to lend to those with a credit rating below 500, because of the risk entailed.

It's a good idea if your score is at 500 or lower that you take the time to improve your credit rating before you attempt to get a bankruptcy car loan. Not only will it put you in a much better position to get offers from multiple lenders, it also will allow you to get a better rate on your loan. People with bad credit and bankruptcy on their records typically have much higher interest rates than those with average or good credit.

You should wait before getting a bad credit auto loan after bankruptcy. Some auto loan companies will offer you a loan as soon a your bankruptcy is discharged, but to get the best loan available, you should wait about 3 years before attempting to get one. You don't have to wait that long if you're desperately in need of a car, but it will help to get you a better interest rate.


You should always review the terms of your offer before you agree to any new loan. Also make sure that the lender you choose is a reputable one who does not practice in predatory lending and offers good rates even to those with bad credit and bankruptcy. A car loan after bankruptcy is possible if you are willing to put in the time to shop around and improve your credit score.