How Do I Get a Car Loan With Bad Credit?

Credit History

People often come into Dependable Chrysler Dodge Jeep Ram asking, “how do I get a car with bad credit,”, or if it’s even possible to get a car loan with bad credit. The answer is yes! We work with drivers near Simi Valley who do not have the greatest credit scores, to make sure that they get the help they need to find a car loan even with bad credit. Find out how to get a car loan with bad credit from our finance team below, or contact us if you have any questions about the process today.

How Can You Get a Car with Bad Credit?

If you’re wondering how to get a car with bad credit, then our finance department has laid out the steps below. The process starts by applying for financing online, to get pre-approved, and then working directly with our finance department on a payment plan that works for you. If you still want to know what steps you should take to get a car loan with bad credit, then first:

  • Determine how much you can afford to pay. This amount should encompass more than just how much you can afford to borrow. Think about other expenses like annual registration fees, car insurance, maintenance costs, and gas costs, and make sure they are included in your monthly budget. 
  • Make a bigger down payment if possible. If your credit isn’t great, a larger down payment will help lenders to see you more favorably as a borrower. Additionally, a larger down payment means you’ll have a smaller loan balance to pay off, leading to less interest paid overall. You can also trade-in a vehicle to add to a down payment.
  • Try to clean up your credit report before applying for a loan. If you catch any errors, you should absolutely dispute them because they could be dragging your credit score down. If you have any outstanding debts, start paying them down where possible – even making a small dent can help your credit score. Making monthly payments can also improve your credit score, getting you a more favorable loan.
  • Be honest about what kind of car you should buy. Your focus should be financing a car with an affordable payment (even if it’s not your dream car), and one that you can afford to take care of in the coming years. Many used and certified pre-owned vehicles are still capable of lasting for years on the road, while still being full of the latest technology.
  • Shop around with lenders. Don’t assume that the first lender to approve you will be the only one. Apply with a handful of lenders, so you can compare the rates of those who approve you. But make sure you make all of your applications within the same 14-day period, to minimize the impact on your credit score.

How to Get a Car Loan with Bad Credit: Improve Your Score

Many people don’t realize that taking out a car loan with bad credit is one of the best ways to improve your credit score. Making on-time monthly payments will improve your credit profile and score, giving you more lending power down the line, so you can get lower interest rate loans near Thousand Oaks and access to better credit cards.

Finance Your Next Vehicle with Dependable Chrysler Dodge Jeep Ram

If you’re thinking of securing a bad credit car loan, then you’ll want to let Dependable Chrysler Dodge Jeep Ram help. We work with many drivers near San Fernando Valley, to make sure they’re getting the best deal possible. You can start by valuing your trade online to see how much you can put toward a new-to-you vehicle with your existing one!

 

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