Can I get a small car loan (just $2,500 to $3,000) with bad credit but without high monthly payments?
I want to get a reasonably priced used car. I can pay for most of it with my own money, but I'll need a small loan for the rest. Can I get a loan with low payments, even with a bad credit history?
Answer
Most lenders won’t approve car loans under $5,000. And in some cases, they won’t consider older-model (more than 15 years) or high-mileage vehicles — two common aspects of moderately priced cars. As a result, you probably won’t be able to finance such a small amount.
Fortunately, you still have other options to purchase a vehicle with bad credit yet without high monthly payments. These options include:
- Getting a signature/unsecured loan with the help of a cosigner
- Extending this loan to the maximum term available. Although you’ll pay more in interest over the life of the loan, the payments will be lower
This should allow you to purchase the vehicle without a problem, as well as rebuild your credit over time.
Eric Schad
Answered on Mar 12, 2021
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