Getting a car loan with a bad credit score can be difficult. If you have a subprime score, we recommend an auto loan with bad credit and instant approval.
These do come with higher monthly payments and terms but, the good news is that you can still get a suitable car loan so you can get to work and drive your family around safely.
Just keep your payments consistent and you will see big improvements to your credit score.
I’ve complied this guide to help you be prepped for your loan. Apply with our network of dealers near you now and get instant approval.
How to Get Instant Auto Loans with Bad Credit
Table of Contents
Be Aware of your Credit Score
Knowing your score is the first thing you should do before you can start shopping for a car loan. You can get a report for free or at a reasonable fee depending on your financial service you use. They can also help you understand the factors that affect your score. You can work on some of these factors immediately to boost your score. This improves your chances of being considered by our lenders.
Research Bad Credit Dealerships Near You
You don’t want to be caught off guard when you start negotiating for instant auto loans with less than average credit ratings. Researching online is the best way to avoid this. Make sure your online research incorporates key terms such as APR (Annual Percentage Rate) which means the loan’s annual interest rate. If you’re planning to buy a used car, you should know its value before making a decision.
Compare Different Instant Decision Lenders Near You
When you start shopping avoid limiting yourself to one lender. Different online lenders offer car financing rates for subprime credit and they’ll be eager for your business. This can keep you from comparing other options.
A lender may consider you for financing when you’ve got low credit ratings, and ignore someone with similar ratings and no credit history.
Remember, lenders will conduct a stringent credit evaluation during your application process. This alerts credit bureaus that you’re about to add onto your debt and can affect your score. Visit up to three lenders to be on the safe side and to make an informed choice or simply get an auto loan with us and we’ll compare you instantly with 20+ different lenders so you can get the best rates.
Pre-qualify with Credit Unions and Banks
Pre-qualifying for an instant car finance for bad credit from a credit union or bank is a great negotiating tool. If you think you can’t get a loan you may want to visit these organizations first. However, pre-qualifying for a loan with low credit ratings can be difficult which is why we suggest using our online approval tool first and here’s why.
- Banks are strict when it comes to choosing the people they lend to. Still, you could get a manageable loan (especially if you’ve got a good working relationship with your bank).
- Credit unions are non-profit institutions that are owned by the members. They’re more likely to lend to members with a low credit score. While account holders in these institutions should be members, the membership requirements are often flexible.
Ensure the Car Approval Terms are Conclusive
Should you get financing through a dealer check to ensure that the finance terms are conclusive before signing. Failure to do so can expose you to high subsequent down payments or increased monthly payments. This is usually referred to as a “Yo-Yo” scam where dealers inform you that your financing isn’t conclusive and you should agree to high-interest rates.
Be Smart With Instant Decision Auto Sales
Below prime lenders are the go-to option for people looking for cars to finance instantly with bad credit. Usually, these lenders are ideal for you if you’ve got a low score and need a car fast. However, their loans are expensive and may not be a good option if you can’t make consistent car payments.
Further, many below prime lenders will utilize your car as collateral. You can easily lose your car by failing to make timely payments. Take time to research. Or, we’ve done all the work for you. Get approved in 60 seconds with our nationwide trusted network of providers.
Consider Loan Terms as Opposed to Monthly Payments
Low monthly payments can be attractive on paper and are often used to persuade buyers. However, you may end up paying much more than the vehicle’s value. This is because financing for subprime credit ratings often come with high annual percentage rates. The give and take is that while you will get approved for an instant loan you will need to pay more then what the cars worth.
To help with this, always look for “the lowest APR over a shorter period.” This will help you get manageable payment options with flexible interest rates. If you can’t find a low annual percentage rate you can opt to shop for a different vehicle make and model. We’ve got you covered and can provide instant approval in 60 seconds or less with our network of dealers near you. You only need to apply.
FAQ (Frequently Asked Questions)
Can I get a car loan with a 500 credit score?
Yes. However, you may have to buy a used vehicle for various reasons such as:
- Low financed amount
- Low-interest rate
- Low monthly payment installments
Used cars are ideal for people with bad credit who need a reliable budget car. This doesn’t mean that you’ll have to purchase an old poor quality car. There are good used, reliable, and safe vehicles in the market to choose from.
How do I get an instant car loan with bad credit?
There are various ways of getting a car loan even with poor score. While some car buyers may want to consider an auto loan, other alternatives can come in handy. These include:
Get a co-signer with an excellent credit rating
This way, you increase your chances of getting loan approval. A co-signer acts as your guarantor and is responsible for the debt should you fail to settle it.
Consider a Buy-Here-Pay-Here Dealer
A Buy Here Pay Here Dealership will help you pick your preferred vehicle at their lot. In this case, the dealer is also your financing institution. This is different from the traditional car sale where buyers utilize a third party lender. A resolution to authorize your loan is made by the same institution that’s gaining from the vehicle’s sale. As a result, they can be more tolerant in financing your low credit rating.
Still, as I’ve said before you need to understand that often these loans come with a higher interest rate compared to other dealers. Further, you may be compelled to make payment in person, and missing payments can lead to repossession of the vehicle. With these lenders, you may also be unable to build your credit history. This is because they often don’t report accounts to credit bureaus. So, be sure to confirm with the lender first that they will be reporting to the bureaus.
Get a second chance vehicle loan
Second chance car loan providers offer you financing options they’re certain will get approved. While these loans are great for people with subprime ratings, they may come with various features that make them less favorable. These include high fees and interest rates. Search online to identify second chance loans specially designed for people with lower than recommended ratings.
What bank will finance a car with bad credit?
Various national banks can help you get car financing if your credit history is poor. Working with an institution that offers auto financing such as credit unions, banks, car dealerships, dealer financial services groups, and finance companies would be ideal.
Can I get a car loan with a 450 credit score?
Yes. There are different types of loans you can apply for. For instance, personal loans offer a great way to borrow huge amounts of money. Repayment periods can range from a few years to five years at favorable ratings which can fall between 6% and 36% annual percentage rates. You can utilize the money in various ways such as reinforcing credit and debit cards which usually come with high-interest rates compared to personal loans.
One of the advantages of personal loans is that many of them are unsecured. However, you need to understand that unsecured loans are usually more expensive compared to their secured counterparts. This is because the latter provides an asset that you can forfeit should you default payment on your loan. The repayment method for these loans is through fixed monthly fees or installments. If you’re shopping for a personal loan avoid only thinking of the amount of monthly fees. Rather, make an interest rate comparison and choose an option that offers the lowest annual percentage rate as it usually is less expensive. We have already set this up with our quick online application process. Just apply now.
Get Approved For a Bad Credit Car Loan Today
While bad credit makes it hard for you to get a car loan, you can still find an instant low-interest rate auto loan with proper preparations and online research.
To improve your credit score, you do want to get a car loan and pay it off. Do this a few times and you’ll get lower interest rates each time you buy. Just use our preferred network and get approved today with a trusted dealership near you.