Auto Loan Options If You Have Bad Credit

About Me
Understanding The Car You Drive: From Purchase To Personalization

I grew up around cars, cutting my teeth in the auto shop. That early childhood love for cars transitioned into a passion for all things automotive. I decided to go to work with an auto dealership so that I could help others appreciate cars the way that I did. That's when I decided it was time to start sharing everything I know with the rest of the world. I created this site to serve as a means of teaching others about auto repair, sales, customization, and more. I hope that the information here helps you discover the potential that your car has.


Auto Loan Options If You Have Bad Credit

17 August 2017
 Categories: , Blog

Having bad credit is not a good thing if you need a loan to buy something, but you should realize that you can still get auto loans even if your credit is not good. If you need a car loan and have bad credit, there are several options you could consider. Here are three good options to evaluate when the time comes for you to buy a car.

Visit a Buy Here Pay Here Auto Dealer

The first option is to go to an auto dealer that offers buy here pay here services. These dealers generally do not turn anyone down for a loan; however, you might end up tied to weekly or biweekly payments for the vehicle you buy. This is the downside of these types of auto dealers, but they are a good option when you cannot find a loan anywhere else.

Get a Cosigner for Your Loan

A lot of people who have bad credit will use a cosigner to help them get a loan. The benefit of this option is that an auto dealer will base your loan on your cosigner's credit. If your cosigner has great credit, you will not only get approved for the loan, but you will also qualify for a low interest rate.

The downside to this is that it can be difficult for many people to find cosigners. A person that cosigns becomes responsible for the loan, and this is one of the reasons people are often hesitant to cosign.

Apply for a Loan on Your Own

The other option you have is to look for an auto dealer that offers loans to people with bad credit. These dealers are not the same as buy here pay here dealers, but they do offer inhouse financing. To qualify for a loan, you will most likely have to prove your income to the dealer, and you can do this through pay stubs and bank account statements. The dealer may also run your credit score to see where it stands. With poor credit, you may have a higher interest rate on your loan because of your credit, but at least you would have a way to get a loan.

There are ways for people to buy cars even if they have horrible credit. If you are interested in finding out if you could get a loan to buy a car, visit a bad credit car lot today. They can help you get the loan you need to drive off today with a used vehicle of your choice. For more information, contact companies like AutoStart.