3 Important Steps to Follow to Get a Car With Bad Credit

If your credit score is low, you’re probably thinking the chances of getting approved for a loan to purchase a vehicle are slim to none. While it’s not uncommon for people with poor credit to have more of a challenging time getting approved for different things, it’s not impossible. If you’re in need of a reliable vehicle and simply can’t do without one, there are certain steps you should be prepared to follow to improve your chances of getting the loan you need to buy a vehicle of your choice.

Focus on Improving Your Credit Score

Your score may be low because you have a lot of debt and not because you haven’t paid back some of the debt. If you’ve only been paying the minimum each month, try putting a bit more down. Making larger payments could help you get rid of some of your debt a lot faster. You could make a request for a credit increase because then your available credit would increase, and your usage would decline, boosting your score up a bit. Don’t forget to make your payments on time. Missing a payment could leave a negative impact on your overall score.

Now that you know you’re going to apply for a loan to get a car, you shouldn’t apply for additional credit cards because those applications leave hard marks on your credit report since you’re applying for them with your social security number. While your score may still be a bit low, these are a few of the things you can do to get the overall score to increase by a certain percentage.

Find Someone Who Can Co-Sign For a Loan

Finding a person to co-sign is another way of getting a car with bad credit. If you have someone you can trust, such as a parent, sibling, or even a significant other and they have relatively good credit, it’s possible to get approved at a much faster pace. Lenders are often willing to approve loans when they see the co-signer has good credit because the co-signer is agreeing to make payments if the original applicant doesn’t follow through with making those payments. It’s basically like a security net for the lenders because it’s a way for them to make sure they’re still going to get the money back.

Before you start searching for someone who wouldn’t mind co-signing, you need to find a dealership that allows co-signers. Not all dealerships are the same, so it’s better to find out this information in advance rather than to show up to the dealership expecting them to provide you with a loan simply because you’ve brought someone with you who happens to have a good credit score.

Look For Dealerships Offering Bad Credit Auto Loans

Do your research and start looking for a dealership in your area that offers bad credit auto loans. Some of these dealerships understand that applicants aren’t always going to have the perfect scores because they may have some debt from the past that is now causing a problem for them when they’re applying for a loan to get a car. As someone with bad credit, it’s important to know that the interest rates on your loan may be significantly higher than the rates a person would have to deal with if they had good credit.

You could end up spending hundreds of dollars more than someone with good credit. However, if you need a car and don’t have the cash to pay for it in full, this may be one of the most feasible options for you to consider. One way to save money when dealing with higher interest rates is to choose shorter payment terms. Rather than planning on paying off the vehicle within 48 months, consider agreeing to pay it off within 36 months or even 24 months. You’d need to make larger monthly payments to get it all paid off, but you’d save in the long run because you’d pay less interest.

If you have bad credit and would like to get a car, you’re probably expecting to have a difficult time making it happen because people with low scores often get turned down for the things they need. However, you do have some options. You may want to focus on doing a few things to improve your score, finding someone to co-sign for you, or even looking for a dealership that provides offers to those with bad credit. No matter what you decide to do, you should know it’s completely possible to get what you need.