Plenty of people have been there, plenty more are there now.
Millions of Americans have bad credit and it can develop in many ways. Late and missed payments, defaulting on a loan, bankruptcy. These are just some of the factors that may dent credit.
Even if you have tried to be diligent with your finances, sometimes circumstances may conspire against you. The financial crisis of 2008, for instance, was a heavy blow for many people.
Whatever the individual history behind it, “Can I get a car loan with bad credit?” is a common question. The good news is that there are auto lenders that accept applications from consumers with all types of credit.
With poor credit, it can help to be realistic about the car you may be able to buy. You might be looking at a used vehicle rather than a new one. Take some of the guesswork out of what you can afford by using an affordability calculator to estimate your total loan amount, and a payment calculator to estimate monthly car payments.
The Federal Trade Commission (FTC) recommends getting a copy of your credit report before shopping for a car loan, which enables you to check for errors that could affect access to credit.
“You have the right to dispute inaccurate information in the report, and you should do that before you apply for vehicle financing or a lease,” says the agency.
Bad credit may mean you need to provide a down payment or trade in your vehicle to gain financing. It might also be necessary to apply with an auto loan cosigner to give a lender greater assurance the loan will be repaid.
Where can I get a car loan with bad credit?
There are different types of lenders to consider when searching for subprime car loans. When it comes to auto financing in general, whether credit is good or bad, the FTC recommends shopping around.
“Consider offers from different dealers and several sources of financing, including banks, credit unions, and finance companies. Comparison shopping is the best way to find both the vehicle and the finance or lease terms that suit you best,” it says.
When you are ready to apply for financing, the chance to get pre-approved from home could save you time talking loans at the dealership. If approved, it can empower you to shop with the confidence of a cash buyer within the terms of the loan approval.
Competitive rates for qualified buyers
Online lenders like A.E. Financial offer a quick, easy and secure application process, and accept applications from consumers with all types of credit. A.E. Financial offers competitive rates for qualified buyers and prepares multiple offers based on your specific car-buying needs.
If you have bad credit and are looking to get a car loan, apply for financing online in minutes and receive an instant decision.