Car Loans for People With Bad Credit
If you have seen great rates advertised for car loans for people with good credit, you may wonder, “What are the rest of us supposed to do?” Can you get an auto loan with bad credit? If so, where can you find one which has affordable interest? In this article, we’ll go over everything you need to know about auto loans for people with bad credit. But first, here is a chart with recommended bed credit auto lenders:
Are There Auto Loans for People With Bad Credit?
When you’re down on your luck financially, it can start to feel like there are no lending products out there to help you get back on your feet (or back on the road, in this case). But there are auto loans for people with bad credit. There are even car loans with bad credit no money down for people with no credit. You just need to know where to look.
What Are the Requirements for Bad Credit Auto Loans?
Good credit is not a requirement to apply for an auto loan. The only basic requirements are these:
- Proof of identity and residence
- Proof of insurance
- Proof of income
- Information on the vehicle being purchased
Many lenders will give you a quote before you provide all of this information and documentation. So it should only take a few minutes to fill out the form to find out if you qualify for bad credit auto loan.
Types of Low Income Bad Credit Auto Loans
Bad credit car loans are either secured or unsecured. If you get a secured loan, it is tied to collateral. Usually, this is the vehicle itself. But you can also apply for unsecured bad credit loans which do not require collateral. These are the types of auto loans which most of our recommended lenders offer.
Where Can You Find the Best Auto Loan Rates for Bad Credit?
When shopping for auto loans for bad credit and repossession, you can look online or you can try local dealerships. These can include unsecured bad credit loan dealerships and “buy here, pay here” dealerships.
We recommend that you look for a lender online being as this option gives you more freedom to shop for a vehicle anywhere you choose compared to “buy here, pay here” dealerships. Additionally, you will have access to a much larger network of potential lenders, and you can apply for loans and receive offers far more rapidly than you could in person. You can also look up bad credit auto loans reviews online with ease. This way you can proceed to enter a relationship with a lender feeling secure in the knowledge that others have had good experiences.
How to Raise Your Credit Score Before Applying for an Auto Loan
Want to try and boost your credit score to qualify for more competitive auto loans online? Give the following suggestions a try:
- Catch up on any payments you are behind on.
- Ask creditors to forgive one-time offenses, erasing them from your record.
- Sign up for Experian Boost and similar programs so that credit bureaus take your utilities payments into account when generating their reports.
- Check your credit reports for accuracy and correct any damaging errors you find.
- Have someone you trust with a high credit score add you to their account as an authorized user.
- Avoid closing old accounts, even if you have paid off their balances in full and no longer need them.
- Drop your credit utilization as far as you can for the time being.
- Only apply for loans or lines of credit with lenders who run the “soft” credit checks.
Even a modest increase in your credit score could help you qualify for lower interest rates.
Apply Now for an Auto Loan With Bad Credit
Whatever your credit score, we make it fast and easy for you to find an affordable auto loan with bad credit. Just scroll back to our comparison table to apply for loans from our trusted lenders. Soon you’ll be behind the wheel of your new car and you’ll be back on the road.
