In today’s busy world owning a car can be a necessity. Unfortunately if you have bad credit, leasing or buying a car can seem next to impossible. With low scoring credit many doors slam shut in your face or interest rates are raised sky-high. Thankfully there are a number of options to purchase a car at a regular interest rate even if you have bad credit.
Pick A Loan Company Who Can Make A Deal
If you have bad credit then getting access to a decent loan seems to dry up like the Sahara Desert. Most lenders see poor scoring credit and lose all interest. Nonetheless, there are some lenders you can find online and by word-of-mouth who are willing to meet and negotiate a deal—even if your credit is not doing very well.
Even if you think you are in a hopeless situation in terms of your credit, chances are other individuals have tried—and succeeded—in getting a loan who were in even worse shape. Therefore it is definitely well-advised to look around for a lender who can make a deal. You might be surprised and it could be the first step to having a steering wheel in your hands if you can secure even a modest amount of capital.¹
Shop Within Your Limit
If you have low credit then this advice is even more important to follow: don’t shop above your means. If you need a solid set of wheels to get you to and from work then by all means, go for it. But don’t go lease a BMW with a high monthly payment that puts you in debt to a loan company for years and years. You are not in that position. Don’t forget the cost of gas, insurance and everything else that comes with a car (hello, oil changes). Buy a more reasonably priced car that is dependable and buy used if possible.²
Try To Fix Your Credit As Much As Possible Before Car Shopping
If you have bad credit it can feel impossible to get out of the black hole you are in. However you should take steps to improve your credit as much as possible before applying for a car lease or a loan. Simple things like paying off whatever you can on your card, speaking with your credit card company and working towards a settlement of debt can help a lot. Make sure to actually determine what your credit is first as well. As simple as it sounds you may not be in as bad shape as you think. There are various services online that let you check your credit levels.³
Is Pre-Approval An Option?
If possible, look into getting pre-approved by a bank before you go and look for a car. By doing so you will get information on what size of a loan you will get and let you know more about where you stand in terms of what kind of car you can afford. Also, when you are trying to get a loan, the fact that you are pre-approved will save you a lot of headaches in terms of filling in forms and bureaucracy, which is the last thing you need when you are already financially stressed.⁴
Get Someone Trustworthy To Co-Sign
It can’t be emphasized enough: a co-signer can be a lifesaver. Having a financially reliable co-signer greatly improves your loan access. Keep in mind that your co-signer will have to pay if you can’t, so it shouldn’t be any stranger off the street. Find a financially well-off friend or family member, and make sure to pay off your loans on time.
Don’t let having bad credit stop you from trying to find a new car with financing. There are many options to still get a vehicle if you think outside the box and keep up hope. Searching online is another great strategy to look for trustworthy online services that can help individuals with bad credit get a car loan.