How to Get a Car Loan With Bad Credit

Posted: Saturday, April 27th, 2019

If you have less than perfect credit, you may think you can’t finance a new car in St. Louis — but you would be wrong. While finding bad credit car financing can be a greater challenge than getting a loan if you have excellent credit, there’s good news about having bad credit that can make financing your car easier. Learn more about how to get a car loan with bad credit below, so you can upgrade to the car you need for reasonable rates and terms.

Understand Your Budget

Step one, regardless of your credit situation, is to set a realistic budget for your car purchase. If you haven’t already, sit down and figure out your monthly spending to determine how much you can afford to spend on your new car purchase. Don’t forget to include vehicle expenses, such as maintenance, insurance, and gas.

Save a Good Down Payment

For the best rate — and the highest likelihood of getting your credit request approved — save as much as you can for a down payment. Most dealerships like to see at least 20 percent of your loan amount as a down payment. If you go for guaranteed financing, you can expect to make a down payment of around 10% of the car’s price.

Know Your Credit Score

You’re entitled to one free credit score per year. Get it and see which items are harming your credit and take care of them. Consider speaking to a credit professional to see if they have suggestions for how you can improve those numbers.

Do Your Research

Research the vehicle you want well in advance of visiting the showroom. You should know which make and model you’re after, which features you want, and what a fair price for that vehicle is, so you have a better position from which to negotiate.

Pre-Qualify Before You Shop

Apply for financing before you speak to a dealer about a vehicle. Pre-qualifying will allow you to see how much you qualify for, decide whether you should use a cosigner, choose the right type of car loan, and finalize your loan length and terms in advance. You’ll also be in a better position to negotiate the deal you want.

Couple who purchased a car with Green Light Auto Credit

Get More Financing Advice From Green Light Auto Credit!

Now that you know how to get a car loan with bad credit, why not reach out to Green Light Auto Credit to get started? We have branches serving St. Charles, Florissant, and beyond! Our team of finance experts is eager to help you get the financing you need without all the hassle and headaches. Contact us to learn more today.