Even if your credit score is poor, you can still get a guaranteed car loan from some lenders. Although bad credit car loans are far more expensive than they would be otherwise, it's still possible to get auto loan approval no matter how bad your credit. If your car loan options are limited because of your credit, this guide can help you in getting a car loan.
First, you'll need to know the approximate price of the car which you wish to purchase. Visit your car dealership or give them a call or an email to inquire about the sticker price of the car you are interested in. You'll likely be able to negotiate down from this price, so you can do so in advance or take a rough estimate. The price you'll be purchasing the car for is the number you'll need to submit to possible lenders.
The next thing you need to do to get a bad credit car loan is find a lender which gives loans to people with bad credit. You can ask your car dealership for a recommendation, visit some local banks or look online to find some lenders which offer bad credit auto loans. Since interest rates and other restrictions imposed on bad credit car loans can vary greatly by lender, it's a good idea to find as many lenders as possible so that you can compare the offers of any which are willing to give you a loan.
After you've found some potential lenders, the next step is to fill out applications. Just like for any other loan, you will be expected to supply a social security number, proof of income and proof of residence in order to qualify. It is also often required for those with poor credit to supply a minimum of a $1000 down payment on the vehicle they are purchasing, though this is not always the case. The lenders you apply to can let you know about this and any additional requirements.
Once you've filled out and submitted your applications, you just have to wait to be approved or denied. If you did not search specifically for lenders which advertise bad credit car loans, don't be surprised if your loan applications are rejected. However, if you did go to lenders who are friendly to those with poor credit, you should be able to get at least a few loan offers given that you meet all the other requirements.
Although having poor credit is unfortunate, lenders do exist which will give you a high-risk car loan in spite of your credit. Because of bad credit, the interest rates will be high; however you may have no other choice if you need a car immediately and have no way of fixing your credit. If you do improve your credit in the future, you can always refinance and negotiate for a better rate. In the meantime, this guide may help you get a guaranteed car loan even if your credit is poor.
