You might think getting a car loan with bad credit* is a long and difficult journey. Poor credit can cause some bumps in the road but it’s still possible for many people in this situation to get auto financing that won’t break the bank.† Here are five easy-to-remember tips that may help you qualify for a loan.
5 Simple tips for getting a car loan with bad credit
- Be realistic about what vehicle you can afford and what a lender may be willing to finance. Consider a used car rather than a new one, and an older model over a newer vehicle. RoadLoans offers a range of finance calculators that are useful for estimating affordability and possible payments.
- A down payment will be a requirement in many cases, and the more money your budget allows you to put down, the more you may benefit. A down payment, which can include a trade-in, reduces the loan amount and potential risk for a lender. A smaller loan amount will also reduce finance charges on that loan, saving the borrower money.
- A creditworthy co-borrower or cosigner could also help. Co-borrowers on a joint loan are both responsible for repaying the loan and have equal rights to the vehicle. A cosigner, on the other hand, agrees to make the loan payments if you fail to, and even pay off the whole loan, but has no rights to the vehicle. Both options spread risk in the eyes of a lender.
- Check your credit reports for errors that might limit access to financing and the best possible terms for your position. You can get a copy of your reports from each of the major reporting agencies, Experian, Equifax and TransUnion, for free once a year. Dispute any errors with the agencies if necessary.
- Apply for financing before you shop for a car, and compare any offers you receive to find the best deal. Choose a suitable lender, such as RoadLoans, that accepts applications from people with all types of credit. Approved applicants can visit the dealership already knowing how much they have to spend on a car, and negotiate its price with the confidence of a cash buyer.
Options for finding an auto loan with poor credit
Banks, credit unions, dealers and finance companies are all potential options when seeking a car loan with subprime credit.
As an online lender, RoadLoans enables you to apply for financing in your own time, with no pressure. It takes just a few minutes and we’ll give you an instant loan decision. If approved, you’ll receive multiple loan offers tailored to your needs.
Once you’ve selected your offer, print your loan documents and visit the dealership to choose the car, truck or SUV that meets the loan requirements and is right for you. After selecting your vehicle and settling the price, the dealer will work with you and RoadLoans to finalize the transaction.
RoadLoans has provided auto financing for thousands of qualified applicants. Getting a car loan with bad credit may be possible for you, too.
Apply for a car loan and get an instant decision.
* “Bad” or “Poor” credit generally is considered a FICO score around 600 and below by sources including the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press), Bankrate.com, Credit.com, Investopedia, NerdWallet.com and others. The Congressional Budget Office identifies a FICO score of 620 as the “cutoff” for prime loans. FICO scores are not the sole factor in lending decisions by RoadLoans.com and Santander Consumer USA.
† These statements are informational suggestions only and should not be construed as legal, accounting, or professional advice, nor are they intended as a substitute for legal or professional guidance.
RoadLoans is not a credit counseling service and makes no representations about the responsible use of or restoration of consumer credit.
Written by:
With 10 years of experience in auto finance, Rob Looker helps car shoppers find the right vehicles with the right financing so they can enjoy the road ahead. When he’s not creating content, he’s often behind the wheel, exploring new…
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