Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
Applying for car loans after a bankruptcy can be a daunting task, but it is possible to secure a loan. Since your credit is less than perfect, you need to have compensating factors like work history and down payment to offset your low score.
1. Use a Co-Signer
If you have a spouse or relative that can co-sign with you, this is a viable option to help get a car loan at a decent interest rate.
2. Have a Large Down-Payment
Your credit is not as important if you have a large down payment on the vehicle. Typically car buyers put down less than 10 percent, but with a bankruptcy you should aim for a 20 percent down payment. This makes the loan less risky for the lender so they are more likely to lend you the money.
3. Have steady Employment
Having worked in the same field and the same job for many years is a plus when your credit is less than perfect. The lender will likely feel comfortable in the fact that you should continue receiving a paycheck in the future.
4. Pay Down Debt
Pay down some credit cards or personal loans in order to raise your credit score. Your score will be higher and you will less risky to the lender since your debt load is low.
- Alternatives to Getting a 2nd Mortgage
- 3 Warning Signs of Loan Modification Scams
- FHA Loans for a First-Time Home Buyer
- 3 Common Short Sale Mistakes
- Home Equity Loans for People with Bad Credit
- Low Down Payment Loan Qualification
- What To Do When Mortgages Default
- Should You Refinance? Make Sure the Timing is Right
- 3 Factors that Can Negatively Affect Your Mortgage Application