Even if you have bad credit, getting a car loan has gotten a little bit easier in recent years. The truth is that some lenders look for people with bad credit to give them money. They are often called "sub prime lenders," and they can give you the loan you need to buy the car you want.
Even though they will check your credit history, they will care more about your ability to pay and where you work now. Most likely, you can get the car loan if you have had your current job for about six months and make enough money to make the payments.
You will also need to have a checking account that is still open. For them to be happy, your payments may need to be taken out of your bank account every month. It gives them a little more peace of mind, especially if your paycheck goes straight into that account.
But there may be a couple of things you can do before you apply for a car loan that will help you get better interest rates. You should get a copy of your credit report and check it to make sure everything is correct. If it needs to be changed, talk to the agency that made the report and try to get the changes made. Then, you will have to wait at least a month (and maybe even two) to make sure that the changes have been made. Remember that this report will directly affect your interest rates and the amount you can borrow.
If you can, you should also try to pay down any debt you already have. This will help you get a better credit score. A lender will always look at how much you owe compared to how much you make. The less you owe, the better deal you'll get. If you owe too much, you won't get as good of a deal as you might think.
You will also need to know exactly how much you can pay back, since taking out a loan that is too big will only hurt you more. Set a goal for yourself and only borrow what you need right now.
Apply online to a number of lenders and get quotes from them for auto loans. You should probably get at least six different ones and apply for them all at about the same time, within 10 days. This way, the credit bureaus will only count it as one loan application.
Compare the different loan applications and then fill out the one you think is the best. Try to get your auto loan pre-approved so you know exactly how much money you can use. A check will also help you get better terms from the dealer. You shouldn't choose your car before you get the blank check because you don't know how much money you will get. It won't work for much longer than 30 days. Check online to see how much cars cost. This will help you get more car for your money. If you need to or if your credit score gets better, you can refinance the loan to get a better deal.
