Credit Help Center

If you are trying to buy a car and you have bad credit, you need to know a few things. There is really no simple answer on how to buy a car with bad credit. Some people with bad credit will get approved and some wont. A lot is based on your credit score obviously. There really isnt much human underwriting involved. Some companies will only look at your credit score while others will look at your credit profile. If you have bad credit, but have a credit score in the mid 600s, then you have a decent shot at getting a car loan if the car dealer can find an Auto Loan company that only looks at the score and passes over the credit profile.

In most cases if you have bad credit you are going to be looking at interest rates as high as 21%. Yikes!! A rate like that hurts and it makes your payment really high. If you can manage to find a co-signer with excellent credit you will be much better off because you will be able to get a rate that is much lower. You might also be able to refinance the car loan and remove the co-signer after a short period of time from 6 to 12 months. Credit repair is going to play a big part in your ability to refinance the loan. Youll want to do this right after you buy the vehicle if you hope to get the co-signer off the loan quickly.

Most of the time, people who are car shopping dont have the luxury of being able to wait 60 days before they get their car. If you can do that, then you have time to do your own credit repair to help your chances of getting financed.

The biggest thing creditors/lenders look at when you are trying to get financed on anything is how you pay your other debts and whether or not you can handle the payment. Have you had other loans that you have paid as agreed that have had similar payment? If you are coming out of a bankruptcy and you have not re-established credit, you are going to run into problems even if your income is enough to be able to afford the car payment the dealership is proposing. Re-establishing credit after a bankruptcy is HUGE!! You have to do this and there are some simple ways to do this. You are going to start with credit cards. You can find credit cards that help you do this on our website. Look at our home page, find the credit building credit cards page and get a couple credit cards from there. If you have a vehicle that you are driving that is free and clear (that mean you dont have a loan on it) go to your bank and see if you can get a loan on it. Get the biggest loan you can get on it, but dont take the cash and spend it. Tell the banker that you are trying to rebuild your credit and that you want to take the money that they give you and put it in their bank and make the payments on the loan from the money they give you. The interest rate they charge you is pretty much irrelevant because it is part of the cost of rebuilding your credit. It is important that the bank reports the loan to the credit bureaus. If they are not going to report the loan, this will not help you. But lets assume they will report the loan. Take the loan funds, put it in an account at the bank, and make payments on the loan from those funds. Yes, you will have to pay the interest. The bank is not going to do this for free. The amount of interest is obviously dependent on the size of the loan and the interest rate. Have them make the loan for as much as they can and have them make the payment as big as they can by making the term as short as possible. This will look good to other creditors and show them that you can afford a large payment. Also, since you will have this money in the bank, you can pretty much pay off the loan at any time. Therefore, if you go to trade in your vehicle, even if you are upside down, you have the majority of the money in the bank account to take care of this problem. This will all look good to the new creditor that is considering financing you for a new car.

Doing credit repair to raise your scores (you can get all the information you want about this on our website) and rebuilding credit is going to make all the difference when you go to buy a car.

I hope this helps. Good luck!

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