Bad Credit Car Loans – a Guide

Have bad credit?  You’re not alone:  25% of Americans have a poor credit rating.  This obviously puts lenders under greater risk when loaning you the money for a new vehicle, but we’ve developed a simple guide to getting the loan you need, regardless of your credit history:

  • Find a Lender: if you have less than average credit, a traditional bank or financial institution will be hesitant to lend you enough money for the car or truck you want.  However, there are a wealth of online and sub-prime lenders who specialize in giving loans to people with bad credit, no credit, or past bankruptcy.  We can put you in touch with such an institution when you fill out our web form.
  • Opt for a Secured Loan: with a secured loan, you put down an asset, usually the vehicle you want to buy, as collateral in case you’re unable to repay the lender.  This is how sub-prime lenders minimize their risk, and how you get yourself in the driver’s seat of a new car or truck.
  • Get a Cosigner: if you can get someone to cosign your auto loan, preferably someone with good credit, you can significantly improve the terms of your lean.  In the case of a secured loan, the cosigner is typically only held responsible for whatever portion of the debt the collateral asset does not cover.  (This can be a good selling point to your potential cosigner).
  • Maximize your Down Payment: although many lenders offer “zero money down” programs, we encourage you to save enough money until you can afford a significant down payment if you are at all possible.  This will decrease your monthly payments, decrease the chance of defaulting on them, and decrease the lender’s risk, enabling you to get better interest rates and terms.
  • Compare Auto Loan Rate Quotes Online: when you fill out our quote form, we not only put you in touch with a sub-prime lender who is right for your needs, but we also give that lender enough data to generate quotes personalized to your credit history, vehicle, and other factors.  You can get the money you need for the car you want from your computer, no running around town!