bad credit used car loans

How to Get Approved for Bad Credit Used Car Loans

It’s not a secret anymore that despite having less than stellar credit, people can still apply for loans to purchase vehicles. The problem lies in getting approved. Cars are major investments, after all, and not many lenders from prestigious banks are willing to finance a new car for someone with bad credit. There are, however, a few things that could help you get a loan for your new ride.

Get a Good Head Start

If you are intent on buying a new car, you must start preparing as early as possible. The first thing that should be on your to-do list is to build up your credit again. This means checking up on your credit, settling any debt you may have accrued, paying bills you may have missed, and maintaining an ideal credit score. During this period, it’s necessary not to make any big-ticket item purchases that could set you back.

Work with the Dealer

Banks aren’t your only choice when it comes to financing your new car. There are actually some car dealerships that specifically cater to people who are struggling with their credit. After an assessment of your finances, these dealers can offer you affordable options. To further sweeten the deal, you can bring proof that you are a good credit risk. Bring documents like your recent pay stub from your job, your paid utility bills, your driver’s license and some personal references. These will put you in a better position to negotiate.

Stick with the Budget

Your choice in cars will most definitely depend on how much you will be approved for. This might limit your options but you must stick with the budget if you want an easier time paying it off. That said, bad credit used car loans may allow you a little more flexibility when it comes to down payment and interest rates. A higher down payment is better because you get lower interest.




Having poor credit history is a burden, especially if you’re raising a young family. While you want to provide for your children and take them where they need to go comfortably, you may feel like purchasing a suitable car is impossible.

However, there’s a reason why car loans for bad credit exist: to help families like yours afford the car they need. Read more on this article:

Auto Pitfalls to Avoid Regarding Bad Credit Loans

For those with bad credit, the good news is you can still secure an auto loan. These loans are not just going to fall in your lap, however. You’ll need to research and avoid these common pitfalls.

Providing Inaccurate Information

 Just because you can get loans with bad credit doesn’t mean you should take the application lightly. You still need to provide accurate information so you can get approved. Financing experts analyze the information you provide meticulously and they’ll be able to spot errors or false information almost immediately.

Take your time with the application, and make sure everything is filled out correctly. You’ll need to provide proof of income, vehicle information, proof of insurance, credit and banking history, and proof of residence.

 Overextending Yourself

 Many people make the mistake of taking out a loan just to reduce the monthly payment. Although this sounds appealing short-term, it could increase your interest rates if the loan term is more than two years. This ends up costing you a lot in interest.

You also don’t want to buy the nicest car on the lot. Doing so increases your monthly payments, making every month a struggle to deal with financially. Instead, choose a used vehicle that still has what you’re looking for that’s within your means. It could also just be a temporary solution until you get a new job or bonus.

Finding the perfect bad credit used car loans is possible if you take your time and avoid certain mistakes, which many have learned the hard way.

Check Critical Areas when Buying a Used Car

Used cars can be a great deal if you know what to look for. Outside of the obvious, like tires, rust, and test driving, here are some musts to keep in mind.

Check for more than fluid levels

The oil dipstick will give you a good idea of what is going on in the engine. The fluid should be brown. If the oil appears milky, there could be coolant in the sump. The odor of gas points to worn piston rings. If you notice metallic flakes in the fluid, then this means that the parts are very worn and won’t last much longer. Repeat the same procedure with the transmission fluid.

You need to be able to see clearly

The windshield is often forgotten in a used car inspection. One thing to always keep in mind, however, is that one little chip can explode into a crack that can cost $200 to $400 to replace. Also look for any signs of the wiper blades scratching the glass. This creates visual impairment when driving at night. Test all wipers and washer functions.

Heat and air conditioning are big ticket repair items

Just because the heating and the air conditioner of the car works does not guarantee that something is not amiss. Leaky valves or blockages can give you problems when you need these sources the most. When you test drive your car, take to a shop that can test the pressure and make and recommendations.

These areas may seem minor in the bigger picture, but they can cost you a lot later on if not found. They also make for a great bargaining tool, especially when you’re getting the ride on an auto loan, such as bad credit used car loans.


Those with bad credit tend to worry a lot about whether or not they can still get a car loan despite their poor financial standing. Understandably, not too many lenders would want to take the risk with those who are struggling to keep up with their debts. Read more from this blog:

Getting Approved for Bad Credit Used Car Loans

There is a significant number of Americans today who have either poor or bad credit. With constantly changing economic climates, it isn’t surprising that many people have lost their jobs or are simply having difficulty seeking employment. If you are one of these people, you can still purchase a vehicle through bad credit used car loans.

Go for a Used Car

There are many reputable auto dealers that have excellently-maintained used cars in their lots. You can still drive with the reliability of a brand new model, without having to worry about the extra costs. Discuss with your dealer about what you look for in a vehicle, and learn about your options in terms of pricing and payment schedule. (more…)

Starter Tips on Taking Out Car Loans for Bad Credit While Bankrupt


In case you need a car, some car dealers give out car loans for bad credit. You may be asked to show proof of ability to pay, usually through a certificate verifying your employment. They will usually determine this by looking at how much you are earning versus how much the expected monthly or annual due of your car loan will be.

This is why it’s important for you to have a steady stream of income from a stable employment–which is why they will ask for a certificate proving your work status. Understandably, the lenders will want to make sure that they will not be put in a compromising spot should they approve a loan that a borrower later defaults on. The more stable your job is, therefore, the better your chances are at getting bad credit used car loans approved. Read more from this blog.

Bad Credit Used Car Loans Deserve Fair Treatment

Everyone accrues poor credit for various reasons. However, a bad credit rating doesn’t mean you should be granted fewer rights than a customer with good credit when it comes to applying for an auto loan. Know that you have a right to fairness—to receive the same treatment granted to customers with good credit. (more…)

Getting a Used Car Loan When You Have Bad Credit

Most people will tell you that if you have bad credit, you can’t ever take out a loan with good terms. However, that’s simply not true. You can get a used car loan even when you have bad credit without succumbing to outrageously high interest rates.

Check Your Credit Score

First, you should check your credit score on your own. Don’t just believe what others tell you. What counts as a bad credit score to one lender may not be bad to another. You can receive one free credit report from the three main credit bureaus each year. (more…)