Frequently Asked Questions

Questions about bad credit auto financing? If you’re looking to secure an auto loan with poor credit or no credit at all, you’ve come to the right place. We understand that credit challenges shouldn’t stand in the way of owning a reliable vehicle. In this comprehensive FAQ guide, we address common questions and provide helpful answers to assist you in navigating the process of obtaining an auto loan with bad credit. Explore the questions below to find valuable information about down payments, loan requirements, interest rates, and more. Our goal is to empower you with knowledge so that you can make informed decisions and embark on your journey towards owning a vehicle, regardless of your credit history. Let’s get started!

Can I get a car loan with bad credit?

Yes, you can still get a car loan even with bad credit. There are lenders we work with who specialize in providing auto financing options for individuals with less-than-perfect credit.

How do bad credit auto loans work?

Bad credit auto loans typically involve higher interest rates and may require a larger down payment. Lenders consider factors such as your credit history, income, and employment stability when determining loan terms.

What credit score do I need for a bad credit auto loan?

While credit score requirements may vary among lenders, you can typically secure a bad credit auto loan with a credit score around 500 or lower. However, keep in mind that a higher credit score can lead to more favorable loan terms.

How much money do I need to put down for a bad credit auto loan?

Down payments vary for every individual based on your credit and income. Other factors that determine the required down payment include the price and value of the vehicle you are looking at, as well as the cost to register your vehicle in the state you live in.

Can I get a bad credit auto loan without a cosigner?

Yes, it is possible to get a bad credit auto loan without a cosigner. However, having a cosigner with good credit can strengthen your loan application and potentially lead to better terms. The cosigner should be a spouse, partner, parent, or child in order to have the most impact. Even if your cosigner doesn't have good credit, they can still cosign to add income to your application. This also helps your cosigner build credit with you. Cosigners are usually suggested to only be added if you both live at the same address, but does not always matter.

What is the interest rate for bad credit auto loans?

Interest rates for bad credit auto loans tend to be higher than those for borrowers with good credit. The specific interest rate you qualify for will depend on various factors, including your credit score, income, and the lender you choose.

How long does it take to get approved for a bad credit auto loan?

The approval process for a bad credit auto loan can vary. If your application is submitted during regular business hours during the week, you can expect a same day response. Weekends are still possible but some lenders are closed and need to wait until Monday. Overall it is generally a very quick process to be preapproved.

What is the difference between a Preapproval and a Final Approval?

A preapproval is an approval based on what you entered on your application. This is subject to verification of many kinds. For example, if you put on the application that you have been at your place of employment for 3 years, but just started to get paystubs last week, that will drastically change the terms of your loan. Everything is subject to verification so it is best to be as honest on your application as possible to assure that the preapproval you get is as accurate as possible.

Will getting a bad credit auto loan improve my credit score?

Yes, timely payments on your bad credit auto loan can help improve your credit score over time. Demonstrating responsible credit behavior by making payments on schedule can positively impact your creditworthiness.

Can I refinance my bad credit auto loan?

Refinancing a bad credit auto loan is possible, but it may come with certain requirements. To qualify for refinancing, you may need to demonstrate an improved credit score or a history of on-time payments.

Are there specific car models I can finance with bad credit?

The availability of financing options for specific car models may vary among lenders. However, there are typically various options available, including both new and used vehicles, so you can find a car that fits your needs and budget.

Will I be denied a car loan with bad credit?

In most cases we can approve anybody. There are some unique circumstances that may disqualify someone completely, but almost everyone can be approved. The difference between being able to come to the terms you are approved for is a different story. For example, someone may be approved but requires more money down to bring the payment down to a qualifying amount. We always try to keep the down payment to the absolute minimum for our customers.

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More Questions?

Feel free to reach out with any more questions you may have. Everybody’s situation is different and we understand that. Feel free to message us and ask any specific questions you need help answering. We are here for you!

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