Are you looking to find out how to get a car loan with bad credit? Well, the good news is that it is indeed possible to get a car loan with bad credit.
The bad news is that you are going to have to pay more for that loan. But if you are willing to live with a compromise, it is possible to get an auto loan with poor credit history.
To get a car loan with bad credit, you will need to see exactly how bad your credit is. If your credit is really bad, expect to pay more money. You should check out your credit report (you can order it online for a price or, if you are willing to wait, request a free copy in the mail) and see how you stand. It’s possible that you may find errors on your report, which you can challenge with the credit agency that publishes the report. This can improve your credit score in as little as 30 days.
If no such improvement is possible, then you need to decide what sort of car loan you want. Do you want to get a traditional car loan from a bank, or are you willing to get a bad credit car loan. Bad credit car loans are available for people who don’t have very good credit history and are always an option for you to consider.
However, the best bet is to see if you can get a car loan from the bank. Now, with bad credit it will be tough. You can try getting such a loan and if you have a solid income, your credit is not that low, and you have some solid reasons for why your credit is bad, you may be able to convince your bank to lend you the money to finance a car.
One the other hand, if you are willing to put a down payment on your car, you stand a very good chance of getting an auto loan with bad credit history. With a down payment, your lender will be much more include giving you the money you need because there is significantly less risk involved.
If you can’t get a car loan from a traditional lender, your only resort is to seek out bad credit car loans. You can find loans online if you spend the time looking around. These loans will be very high interest, so be sure you can afford it. However, paying more for the loan may be worth it, if you need to get a vehicle.
Make sure you spend time looking through various bad credit car loan offers to ensure you get the best interest rates – not all interest rates are the same lender to lender.
You should never get a car loan from the dealership. Typically, dealerships will tack on an extra few percent onto the interest rate to make money – it’s better to secure preapproval outside of the dealership first.
How to get a car loan with bad credit really depends on what sort of strategy you take. Follow the advice given above, look around online, and do your research. This will ensure you find the loan best suited to your needs.