How to Purchase a Car with Bad Credit

You may find yourself in need of an auto loan. But if your credit score is low, major lenders such as banks, dealerships and financing companies will undoubtedly deny you the loan. However, being bad credit does not mean that there is no one you can buy a car without having the proper finances. It would definitely be challenging though and you will have to improve your credit score considerably before a lender will sanction you an auto loan. Here is how you can buy a car with bad credit.


  • 1

    Get a copy of you credit report. You may have to pay a nominal fee in order to get your credit report from a major reporting bureau such as TransUnion, Experian or Equifax. These three bureaus also offer reporting services on their respective official websites which is a much quicker way to go through your credit report.

  • 2

    Thoroughly read the report and look for mistakes in it. There may be outstanding payments that you had already made. Bring any errors that you find in the report to the notice of the reporting bureau. Once all the errors have been rectified, the correct credit report will look much better you will be awarded a better credit score.

  • 3

    Even you credit report is still very bad, you will need to contact an auto-loan lender other than a bank, a dealership or a financing company. Remember that an unorthodox auto-loan lender may sanction you an auto loan even if your credit score is worst but will charge a much higher interested rate than a regular lender.

  • 4

    You may qualify for an auto loan if the amount of loan that you apply for is relatively low. Paying more in terms of down payment is the best way to accomplish this. Save much money as you possibly can which means you will have to borrow less from a lender.

  • 5

    A co-signer can be extremely helpful in circumstances where you are not being sanctioned an auto loan because of a low credit score. It is the co-signer’s duty to ensure that you make your payments. If at some point in time you stop making the payments, the lender will hold the co-signer responsible.

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