How to Get a Car With Bad or No Credit


Shopping for new or used cars can feel overwhelming if you have a poor or no credit history. Your credit score serves as a baseline for credit trustworthiness and if lenders don’t like the score they see, you’re more likely to face higher interest rates, higher payments, and in some cases flat-out denial for a loan.

Fortunately, car buyers with less than optimal credit scores can still get into a great car at an affordable price. Credit scores are just one facet of your credit trustworthiness. There are still lots you can do to show lenders that you’re worthy of not just a loan, but a competitive one. Read on to learn how to get a car with bad or no credit and explore which method best works for your situation.

Shop Around for Loans

Don’t underestimate yourself. always shop around with different lenders and compare available quotes for your specific credit standing. You may be surprised to find that some lenders will look beyond your credit score alone and will take into consideration other payment histories when determining your loan eligibility.

Offer a Higher Down Payment

One of the best ways to shop competitive car loans with bad credit is by offering a higher down payment. This takes a bit of time and discipline on your end, but if you can save up a substantial down payment, you’ll have less money you’ll need to borrow. When you do borrow, explaining your situation and showing prior financial payments on things like rent, and utilities can help you secure a competitive loan.

Find a Cosigner

Working with a cosigner is another way to get a car loan even if you have bad credit. A cosigner simply vouches on your behalf for your ability to pay back the loan. Of course, your cosigner will need to have a good credit standing, and their credit history can be used to determine the rate of your loan. It’s important that if you do work with a cosigner, you keep up to date on your payments, otherwise, the cosigner will be responsible for the loan if you default.

Shop With Buy Here Pay Here Dealers

Buy Here Pay Here dealers are designed to offer flexible financing options for drivers who struggle with bad or no credit. These types of dealers can help you secure a loan that works for your unique financial circumstances. They’ll help you determine what you’re available to afford and will help you shop qualifying models for your price range.

Shop Private Seller

If securing a loan at a competitive rate proves to be difficult, working with a private seller can be a viable option. This option is best for drivers who need a used vehicle at a reasonable price point. Private sellers are usually more affordable than dealerships and can be a great way to snag a good deal. Because you don’t have the benefits of working with the dealership, however, it’s important to bring along a mechanic or someone who can inspect the vehicle before you purchase it. That way you can be certain you’re getting a ride you can count on.


This post may contain affiliate links. Meaning a commission is given should you decide to make a purchase through these links, at no cost to you. All products shown are researched and tested to give an accurate review for you.

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