By submitting your information you agree to
terms of our Privacy Policy and Terms of Website Use.

How to Get Auto Loans for Bad Credit

Just because you have bad credit does not mean that you have no chance of getting that auto loan. However, you should first consider how much you need to loan and whether there is a chance of you waiting so that you can improve your credit. Just two years could help you increase your credit score as the debts are removed from your credit report.


The only time that you may need to consider the auto loans for bad credit is if you are running around in a car that is broken or constantly needs fixing; this will eat up your money which you could use on payments for a new car. Now it comes to finding the best way of getting the auto loans for bad credit.


The first step is to shop around and speak to the different dealers. There are some that will specialize in loaning money to people with bad credit and you should talk to them first. However, watch out for the interest rates that will be exceptionally high so that the lenders can guarantee to get the money back.


Secondly, you will need to speak to your bank. There is a chance that you can get a personal auto loans for bad credit instead. You will already have a good relationship with your bank, especially if you have been with them for a number of years. This will help you get the rates that you want and will also give you the negotiation chances with the dealerships; if you can get the money from somewhere else, they are more likely to match those rates.


If you are really struggling to get auto loans for bad credit then you may need to look at improving your credit score. Consider whether you really need the car that you currently have or whether you can sell it – even if that is for parts. Public transport could work out a lot cheaper than having to constantly repairing your car. This will also help you put money to one side so that you have a down payment on a new car or give you the chance to be able to pay off any of your debts.


While you are paying off your debts, you will also need to look at other ways to improve your credit score. There are a variety of options open to you, such as a joint account with your partner or staying in your current home for a longer period.


If you are still struggling to get the auto loans for bad credit then consider whether you can have someone co-sign for the loan with you. You should look at someone who has better credit scores than you and that you trust. That does not mean that you should make them pay for the car but it will definitely offer the lenders a buffer if you start to fail to meet the payments. This could also help you get better interest rates on the auto loans for bad credit.


Take control of your finances Blog & Community provides readers with unique insight, helpful tips and straight answers about their finances.

  • Reliable resources
  • Useful tips and free tools

Find More Products & Services