Buying Guides

Can I get a car loan with a bad credit rating?

Last updated on March 8th, 2024 at 10:15 pm

Having a car is a big part of life, especially for those who commute long distances. But if you have bad credit, it can be challenging to get an auto loan and buy a car. Car dealership are notorious for requiring an applicant to have good credit to qualify for financing with them. 

While this may seem like an obstacle at first, it is not impossible to buy a car when you have bad credit. It just requires some research and preparation beforehand. Here are some tips on getting car loans for bad credit.

Research and find the best financing option for you.

One of the main reasons people fail to get a car loan with bad credit is because they fail to do their research. Bad credit is not always due to financial mismanagement. Many factors can contribute to someone’s credit score, such as divorce, medical bills, or job loss. 

So, before you start applying for a car loan with bad credit, research and find the best financing option for your situation. Some of the best financing options for those with bad credit are: Car dealerships and finance companies will often work with you to find a payment plan that you can afford. 

However, if you can find a lender who will give you the best financing option for your situation, you will be able to save money in the long run.

Shop around and know your credit score.

Another reason people fail to get a car loan with bad credit is that they do not shop around for the best deal. While researching financing options, shop around for the best rate. This will save you time and energy in the long run and allow you to find the best deal. 

Knowing your credit score will also help you see what financing options are available to you. Different lenders will look at your credit score in different ways. Knowing your credit score will help you determine which parts of your credit score affect the rest. 

For example, if you have missed a few payments in the past, you may need a co-signer to help you get financing. Knowing your credit score will help you determine which lenders you should contact first.

Establish a solid repayment plan.

Bad credit car financing will not be easy to obtain. Lenders will expect you to put down a sizable down payment, have a high credit score, and have a good payment history. If you have missed a few payments in the past, you may have to have a co-signer help you get financing. 

If you have missed multiple payments, some lenders may require you to take an insufficient credit car loan payment re-financing course before they approve you for a new loan. Establishing a solid repayment plan will show the lender that you are committed to repaying the loan. This will help you obtain the financing you need to purchase a car.

Negotiate with the dealership.

Negotiating with the dealership is a great way to lower the price of a car and save money. People with bad credit can often negotiate a better price than those with good credit as dealerships want to make the sale. This is because the dealership knows that a person with bad credit will have a more challenging time getting financing. 

Lenders will look at your credit score and work history to determine if you deserve a loan and at what interest rate. People with bad credit will often pay higher interest rates on a car loan than those with good credit. Therefore, the dealership will often lower the price of the car and give you a better financing deal to make the sale. 

Negotiating with the dealership will often require you to pay cash for the car or have someone with good credit co-sign with you, however.

Find an independent lender.

Financing companies will often work with those with bad credit to obtain financing. This is because they operate without relying on the dealership’s financing rates, meaning they can offer a more competitive rate to the consumer. Finding an independent lender that offers a car loan to those with bad credit can be difficult. 

However, it is worth it for the lower interest rates, flexible payment plans, and lower down payments that you could be missing out on if you only shop with dealerships. Finding an independent lender may require research, but it can be worth it in the long run.


Whether you have bad credit or good credit, financing a car can be costly. That is why it is so important to save money as soon as possible to have enough to pay for a car. A car is a necessity in many cities and can be a substantial monthly expense if you don’t plan and save money for it. 

Having a car can help you get to work and other places around town, so it is essential to save up and plan to make sure you can afford one. Bad credit does not mean you cannot get a car loan and buy a car. You have to be prepared for a longer and more difficult process when applying for financing.

Leave a Reply

Your email address will not be published. Required fields are marked *