Bad credit can sneak up on you. You miss a bill payment or two. You unintentionally overextend yourself on your credit card. You bite off a bit more than you can chew with your home mortgage loan. Regardless of the reason why, bad credit can seem awfully limiting. You may think, for instance, that your bad credit will prevent you from getting the new vehicle you’ve been needing. Think again. Even with subpar credit, it’s still more than possible to get financing for a new automobile.
What can you do to maximize your odds of getting a good loan for an affordable rate? We’ll provide a few tips.
How to Get a Good Auto Loan with Bad Credit
Don’t assume the worst! Have people told you that your credit is bad? First, find out for yourself by obtaining a credit report. Also note that, in the eye of a lender, you may still qualify for a reasonable rate. Don’t rush to the assumption that your credit is a non-negotiable.
Don’t jump to subprime loans. Aim high! Talk to some lenders about getting a prime or near-prime rate. Don’t skip straight to sub-prime unless you really and truly can’t get anything better.
Shop around to compare rates. This is the #1 rule of any loan experience. Not all lenders are going to offer you the same rates, and you don’t want to just settle for the first rate you’re offered. Do your homework. Compare. Save!
Remember that there are plenty of places to get loans. You probably want to start at your local bank or credit union, which often have the best rates. If they don’t pan out, you can potentially find good rates from the dealership itself.
Bring a friend! Visiting different lenders can be demoralizing. Bring along a friend to encourage you, to be an extra set of ears and eyes, or simply to act unimpressed with a weak offer on your behalf!
Think in terms of value. What you’re ultimately looking for is the cheapest money you can get. Sometimes the lowest monthly payment isn’t the best option, if the loan term is too long.
Read the fine print! Don’t let your lender trick you into signing up for a loan that has a lot of add-on contingencies, like the requirement to purchase an extended warranty or some other product that you don’t need.
Certified Used Car Dealers That Accept Bad Credit
A final note: Keep in mind that some used car dealers will be more willing than others to take on a customer with lackluster credit. It pays to do your homework here, and if you need to connect with some accommodating dealerships, you can always reach out to Get My Auto at getmyauto.com. We want to be a one-stop shop for all used car information, and that includes financing tips. Reach out to us at Get My Auto today if there is any way we can make your used car experience smoother.