Trying to apply for an auto loan when you have bad credit can often be very frustrating, especially after you have already had your application rejected by numerous dealerships and financing companies. Thankfully, there are a few options available to you that can help you get an auto loan with a bad credit history, such as the three listed below..
Apply For Financing Directly With The Dealership
One of the most common ways to get an auto loan bad credit is to apply for financing directly with the dealership. There are numerous small dealerships located in many areas that will be willing to extend credit to people with bad credit histories in order to help them rebuild their credit, but this does come at the cost of a higher interest rate and higher monthly payments. While this can end up being a more costly option for you, it can often be the most effective way for you to get a vehicle with a poor credit history.
Save Up For A Larger Down Payment
Another effective option that can help you get an auto loan with bad credit is to simply save up for a bit longer so that you have a larger down payment to offer when you go into the dealership. In many cases, auto loan lenders that may not have even looked twice at your application before rejecting it due to your bad credit may actually change their minds when they are notified by the dealership that you are offering a more substantial down payment. A nice added bonus to adding the larger down payment is that this can often lead to a smaller loan that you will be able to pay off more easily.
Pay A Visit To Your Bank
Finally, you will want to consider paying a visit to your bank if you have poor credit but still need to get an auto loan. In many cases, your bank may be willing to give you an auto loan despite your bad credit if you have worked in good faith with them and have remained current on any bills that you have with your bank, especially if you have been with your bank for quite some time. In addition, by working with your local bank you can often have the opportunity to sit down with the lending agent and actually explain why you have some of the bad marks on your credit. This can often result in you getting an approved auto loan if there were extenuating circumstances beyond your control that led to you receiving your bad credit score, such as going through a bad divorce or being laid off.
Speak with an auto loan lender or a dealership today in order to discuss what options you have that can help you get an auto loan despite your bad credit history. You will want to apply for financing directly with the dealership, save up for larger down payment, or pay a visit to your bank in order to increase your odds of getting an auto loan with poor credit. Companies like AutoStart can help as well.