Bad Credit Auto Loans
How to get a Bad Credit Auto Loan
How to get a Bad Credit Auto LoanHowever your situation arises, bad credit* does not necessarily signal the end for car shoppers. In fact, the good news is that there are many qualified buyers with poor credit who are taking the wheel with the help of financing. And they can enjoy a lot of the same conveniences as buyers with better credit, such as pre-approval.
Every car shopper’s position is different, and planning your car-buying process may help you understand what’s right for your situation, and how best to achieve it. Here’s how to approach car loans when you have bad credit.
Be sure to do your research
You might already have an idea of the car you want to buy, but the Consumer Financial Protection Bureau (CFPB) recommends taking a look at your financial circumstances, including credit history, budget and what you can afford, before shopping for a vehicle.
Credit scores and credit reports
Lenders take a range of factors into account when considering an auto loan application from a consumer with bad credit, and most will make a decision based in part on credit score. Although it is not the sole factor, your score plays a key role in determining whether your application will be approved, and, if so, what interest rate you will get, says the bureau. Credit score is an indicator of someone’s creditworthiness, partly influenced by their credit experiences, which are compiled in credit reports.
The CFPB advocates getting hold of a copy of your credit report from the national reporting agencies to check for inaccuracies. Details of how to request reports are available at its website.
How can I get a better rate?
Even if you end up with a car loan with a high interest rate, it doesn’t have to be permanent.
If you can improve your credit by making consistent on-time and in-full payments, and by using only a portion of your available credit, consider refinancing your loan to get a better interest rate.
“Car loans generally offer lower interest rates than personal loans, so if your goal is to refinance your way to a lower rate, an auto loan is usually the better option,”
Apply for a car loan.
Applying online takes just a few minutes, it’s free, and you’ll get an instant decision.
- Affordable Payments
- Control your Budget
- Simple Financing – Stress Less
- Apply online and get a decision in minutes.
- Know the APR and estimated monthly payment for cars you choose
- Even if you have less than perfect credit, you may qualify
- Never let your credit past determine your credit future
- Specialize in Auto Loans For People with Bad Credit
