It is possible to get a car loan even if you have bad credit. But if you take the first offer that comes along, you'll end up paying huge interest rates and fees and getting ripped off by dishonest lenders. Bad credit is a problem, but that doesn't mean you have to take whatever they give you. Look for other options. You'll soon find out that there are a lot of lenders who are willing to give you a loan at rates that are more affordable.
Score for credit:
Your credit score is an important factor, but it is not the only one. You can still get a loan even if you have bad credit, but the interest rate you have to pay will be higher.
Keeping this in mind, you should get a copy of your credit report and carefully read it. Know that by law, credit agencies must give you a free copy of your credit report. Don't pay for this. Check your credit report for any mistakes and act right away if you find any. Credit agencies must also look at your request to change something and fix any mistakes they may have made.
Stable employment:
You will also have to have a stable job. Each lender has different salary requirements, but they all agree that you need to have worked at the same job for at least 90 days. So, you shouldn't change jobs right before you try to get a loan. Some lenders might ask you to fax them copies of your paychecks to show that you meet this requirement.
In addition to a good credit score, auto loan lenders want applicants to have a steady job. Applicants usually have to make at least $1200 a month. Most of the time, steady employment means working for the same company for 90 days. So, try not to change jobs every two or three months. Paycheck stubs may be asked for by auto loan lenders as proof of employment.
Try to find a lender:
You can look online for lenders who offer car loans to people with bad credit. There are a lot of websites that offer comparisons and lists of lenders who offer these types of loans, as well as help with applying and getting approved. Since they work with a lot of applicants, they know exactly what you need to do to get approved. They can also help you fix any problems that might keep you from getting your loan.
Co-Signers:
Applying for a car loan with a cosigner is one way to get a better deal and be approved. A cosigner will pay if the main applicant can't keep his promise. This makes the risk for the lender much lower, so the interest rate on the loan will also be lower. This is a great way to help get a car loan approved without much trouble.
