Financing a car under normal circumstances can be a task in itself, but knowing how to finance a car with bad credit comes with its own complications. Luckily, this situation is fairly commonplace and there are some useful strategies that help when trying to finance a car with bad credit.
A useful step for the borrower is to acquire a copy of their credit report, according to the Federal Trade Commission (FTC). Going through your reports yourself will ensure all of the information about your credit history is correct. Credit history is one element, among many, that lenders may use to determine someone’s credit worthiness. The Consumer Financial Protection Bureau describes how to request credit reports here.
Explore your options
Once you have done this, you need to find out how you’re going to finance your vehicle. Check out A.E. Financial's finance calculators to help you estimate what is in your range when financing cars with bad credit.
The FTC recommends shopping around and exploring all of your options when seeking finance for a vehicle, no matter what your credit is like. Explore credit unions, finance companies, banks, and online lenders in order to know the true scope of your options.
Cosigners and money down
When looking at how to finance a car with bad credit, it may help to get an auto loan cosigner to possibly widen your financing options. You may also have to put up a higher down payment to help, or trade in a vehicle.
All credit types welcome
A.E. Financial works with consumers of all credit histories and, after an online application, provides an instant decision by email. Qualified applicants can get approved before setting foot in a dealership. A.E. Financial also offers many services and tools to aid in your car-financing journey.
If you’d like to explore A.E. Financial as a financing option, visit our about page, and if you’re looking to apply, visit our application page.