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?
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.
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Does car insurance get cheaper the longer you have a driver's license?
Everyone says that new drivers have to pay the most for insurance. So does that mean I'm going to pay less over time? Is it because I've had my driver's license longer?
Mar 12, 2021
In California, can I return a car to the dealer if I didn't sign a full-coverage insurance agreement?
"I financed a car through the dealership, but I didn't get a good deal. The dealer forgot to give me a full-coverage insurance agreement to sign. They've promised to upgrade my car if I sign it. Can I return the car to the dealer, as banks will void the loan because I didn't sign this agreement?"
Jun 18, 2021
"Do insurance companies consider a 2019 Volkswagen Golf GTI a sports car?"
"I want to get one and I heard sports cars cost more to insure. What kind of car is it considered? Will I pay more?"
Jul 27, 2021