Have you been turned down for auto financing because of bad credit? There are many ways to get approved for bad credit auto financing. Maybe your credit score doesn’t quite make the cut – that’s where many people find themselves. It is possible to get an auto loan if you have a spotty credit history, so don’t worry! Read on to learn more about auto loans with bad credit!
Check and Fix Your Credit Report.
To improve your credit score, review your credit report from the leading credit reporting agencies: Experian, Equifax, and TransUnion. Access to this information will help you detect any inaccuracies on your credit report that could be causing problems for you. By submitting dispute forms for every error you detect, you become aware of everything appearing in your report and then can remove inaccurate information.
Keep up With Your Payments for A Long Time.
While you work to clean up your credit report, make sure you pay all bills on time. If you can show several months of on-time payments or a year or more of responsible bill-paying behavior, you are more likely to be able to obtain car financing with bad credit.
Apply for Credit with Your Bank or Credit Union
If you have a bad credit history, the first place to look for bad credit card financing is a bank, credit union, or other financial institution with which you have an established relationship. These lenders will be more willing to take a chance on you than a company that doesn’t know you or your situation. They can help you know what kind of car loan you qualify for based on your income, credit history, and other factors.
Apply for Credit with Subprime Lenders
If your bank or credit union is unwilling to provide a loan for a car purchase, you can apply for financing through what is known as a subprime lender. These are institutions that exist to provide loans for consumers with bad credit histories.
Get a Co-Signer to Secure the Loan.
If you’re certain of making your car payments on time, without delay, and never late, you could ask a friend or relative to co-sign your loan. This could help the financial institution have more confidence in granting the loan and lower both your interest rate and the down payment required.
