How to Get a Car Loan with Bad Credit



It’s been a rough few years for many Columbia shoppers when it comes to finances. Many people have taken hits to their credit scores that now leave them wondering how to get a car loan with bad credit. The good news is, bad credit car loans are successfully made every day at dealerships like Sharp Chrysler Dodge Jeep RAM. Our finance department can help if you need to know how to get a car with bad credit. 

How to Get a Car with Bad Credit

The first step to getting a bad credit car loan is to apply for financing with us. You can also apply for an auto loan at your bank but do so at the same time to avoid further damage to your credit score. When you apply for financing with us, we shop around to our lending partners who have established relationships with us to help Lawerenceburg drivers get the loans they need, while working together to make payment plans that work for all parties involved. That said, depending on your credit score, your interest rate is likely to be higher than what’s offered to shoppers with a higher credit score. 

What Steps Should I Take To Get a Car Loan with Bad Credit?

When it comes to how to get a car with bad credit, there are some things you can do that will improve your chances of getting a loan and potentially even lower your interest rate. They include: 

• Determine how much you can afford to pay. Think in terms of how much it will cost to own your car in Lewisburg. That includes fuel, maintenance, potential repairs, registration fees, taxes, and insurance. 
• Make a bigger down payment if possible. If your credit isn’t great, a larger down payment will help lenders to see you more favorably as a borrower. It also means you’ll have a smaller loan balance to pay off, leading to less interest paid overall. Having a vehicle to trade will help you increase your down payment. 
• Clean up your credit report before applying for a loan. It’s not uncommon for credit reports to have errors. Go over your report and make sure it’s correct before you apply for a loan. Correct any mistakes with the credit bureau. 
• Be honest about what kind of car you should buy. Your focus should be financing a car with an affordable payment, even if it’s not your dream car, and one that you can afford to take care of in the coming years. 
• Shop around with lenders. Don’t assume that the first lender to approve you will be the only one. Apply with a handful of lenders so you can compare the rates of those who approve you. 

If you take out a car loan with bad credit and are able to consistently make your payments on time every month, it will help you to improve your credit profile and credit score, giving you more lending power down the line for lower interest loans and credit cards.

Get Help with a Bad Credit Car Loan at Sharp Chrysler Dodge Jeep RAM! 

 At Sharp Chrysler Dodge Jeep RAM we’re always willing to work with shoppers to help them get the cars they need with loan terms that suit their budgets. Contact us today to find out how to get a car loan with bad credit. Or, pay a visit to our car-buying tips to learn more about the financial part of the buying process.