Ways & How

how to buy a car with bad credit

how to buy a car with bad credit

  Buying a car with a bad credit is doable but not easy. If you have been rejected once or twice just because of your bad credit, then you’ll know how hard and difficult it can be to secure credit when your credit is not so perfect. There are however ways on how to buy a car with bad credit, and all you have to do is research them and learn as much as possible before you begin shopping for your dream car. Stay positive, and you will be surprised that everything else will just fall into place.

  1. Finding the right lender is a must. If your car loan application has been turned down at most thrice, then it must be that you are with the wrong lending firm. Know that while some lenders are prime entities, some are not. The best approach here is to find a lending group that has a special service particularly designed for clients with bad credit.

    But you might wonder where to find them. Take it easy. The Internet alone can provide you with good and reputable lenders.



    There are many of them spread out online. You might be surprised that many of these online lending entities are actually working only with people with bad credit ratings. Oftentimes, they even have much better lending terms, which can be especially beneficial given your credit status.

    More interestingly, some of these lenders do not actually care about your credit score as long as you have a steady flow of income and a reasonable down payment on the day of signing.

  2. Bring a couple months of check stubs reflecting your regular income. This is one of the primary aspects of building trust with the lender. Your check stubs are material evidence showing how capable you are to meet the payment requirement of your desired car loan. It is advisable that you show your regular monthly earnings at least for the past 6 months.

  3. Being conservative is better. This doesn’t necessarily mean that you can simply settle on something that you are not happy with. But it also means that you can settle with something less fashionable or fancier than you originally wanted. Your chance of being approved is better when the car you are about to purchase is less expensive, so learn to settle rather than go without.

  4. There is no harm in trying to negotiate for the best interest rate. Do you know that interest on a loan is negotiable? But only up to a certain limit. So try to negotiate for lower interest even though your credit is not good. There is no harm in trying; you may be surprised sometimes how far haggling can get you.

  5. Get somebody with good credit to co-sign for you. Essentially, most lenders will not consider lending you money when your credit is bad and your monthly income is not enough to support a car payment. The best way to get around this is to have a friend or family member with good credit co-sign for you.

    Remember that a friend or family member who co-signed for you will be at risk if you fail to make your monthly payment. Therefore, meeting your payment obligation is important not only to improve your credit ratings but also to save your co-signor’s credit as well.

At this juncture, you probably have learned a thing or two about how to buy a car with bad credit, so go and apply for your loan now.

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