You might be able to survive without a car, but that doesn’t mean it’s convenient. When you need a vehicle to get to work, that’s the reality of your situation. Unfortunately, some lenders tend to care more about a credit score than they do your personal situation. Bad credit car loans are a necessity for many shoppers, so it’s important to know how you can get a good loan when your financial history is a little bit lacking.
Don’t Lose Hope
If you assume your credit is going to ensure you’ll never get a good rate, you’re already admitting defeat. If lenders and dealerships avoided everyone with bad credit, car sales would probably go down significantly. Keep on searching and you’ll eventually find someone willing to give you at least decent terms.
Bad credit car loans are difficult to get when you’re going through a faceless bank, but become much more realistic when you work with an actual person. This allows you to discuss your situation beyond the bad credit score and make your case for why you’re not a high-risk borrower.
Target Overall Terms
Once you start talking about monthly payments, you’ve already lost your leverage. You should discuss the overall terms of the loan so you know how much the car will actually cost. With long-term numbers established, you won’t get tricked by low monthly payments and high interest fees that end up being very costly as the years go by.
Skip the Bells and Whistles
Some lenders will try and tempt you with add-ons that don’t actually save you any money. Stay focused on the cost of the car, the interest rate and and the terms of the loan.
A low credit score can hold you back, but it can be overcome. Look for car loans with reasonable terms, keep your eyes on the prize and you should be able to get what you need.