Sunday 24th of January 2021

Can You get an Auto Loan with Bad Credit?

If you’ve ever shopped for an auto loan before, you know how important your credit score is to getting approved. For many people, their score is the difference between getting denied and getting approved. Fortunately, even if you don’t have a great score, you’re still capable of getting approved. There are many lenders out there who specialize in working with consumers who have bad credit. Of course, taking out a car loan with a poor financial standing will often lead to a high interest rate. If you have a less than perfect financial report, but would still like to get vehicle financing from a reputable lender, try out some of these tips for getting the most out of score. When you’re done, don’t forget to get online quotes – it’s free and takes just a few minutes!

  • Before you even think about getting an auto loan, check out your report online and find out exactly where your score stands. Whether it’s better or worse than expected, at least you’ll know for sure. While you’ve got your report, take this time to meticulously go over the information. Thousands of people have mistakes on their report, some of which can have a negative effect on your score. If you find any type of mistake, report it to the three major bureaus immediately so that they can investigate it.
  • If it’s at all possible, try improving your credit score a bit before applying for your auto loan. There’s a number of things you can do to help increase your score, such as paying down your total amount of debt. Having a large amount of debt compared to your available credit is never a good sign to lenders, so do whatever you can to lower it. Also, try to avoid applying for any other loans or credit cards in the months leading up to your auto loan. Too many inquiries can give you the appearance of desperation to lenders and hurt your interest rate.
  • In the case that your number is completely beyond fixing in the short-term, you should strongly consider saving some money before purchasing a new vehicle. With a bad score, you’ll probably end up with a less than desirable interest rate, but having a large down payment can help offset that. Any money you can save up now will allow you to take out a smaller loan and possibly receive a better interest rate.
  • Regardless of your number, one of the best things you can do if you’re looking for an auto loan is to shop around. There are hundreds of different lenders out there and you never know where you’ll find the best deal. We strongly encourage all of our visitors to check out what the online lenders have to offer. With many companies, you can even get online quotes for free!