PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can people with bad credit get a car loan?
My grandpa gave me a car when I graduated from high school years ago. But it is too expensive to repair anymore. Where I live doesn’t have great public transit, and I need a car to get to work. I have bad credit, so I’m not sure what to do. Can you get a car loan even if you have bad credit?
Lauren Smith · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m sorry to hear the car your grandpa gave you is on its way out! But don’t worry—people with bad credit can still get a car loan.
To improve your odds of qualifying for a car loan, you can:
- Make a larger down payment to reduce the amount you need to borrow.
- Work with lenders who specialize in bad credit.
Cosigner: A cosigner who has good credit will essentially vouch for you with lenders, using their better credit as leverage. This can help you get approved for a loan and secure a better deal.
Down payment: The down payment is how much you can pay up front on the car. You’ll pay the rest in monthly installments. Paying a significant portion up front not only looks good to the lender (it’s proof you have savings) but also will reduce the loan amount needed to pay for the rest of the vehicle. However, ensure you’re not causing yourself any financial strain by making too large of a down payment.
Specialized lenders: Dealerships sometimes offer in-house financing to help people with bad credit. Other financial institutions like banks on national and local levels may also have departments that can help. But if you choose to take out a loan specifically designed for people with bad credit, go over the agreement carefully. Sometimes, these loans come with extra high interest rates or APRs to mitigate the risk involved on the lender’s end.
If you get a car loan you are unhappy with, know that you aren’t necessarily stuck with it. Upon improving your credit after several on-time loan payments, you may be able to refinance into a loan with more favorable terms.
You can do this quickly and easily with the
Jerry
app. Jerry removes the hassle by instantly connecting you with top companies so you can compare offers from multiple lenders to find the best option for you. On average, car owners who refinance save $85 a month on their loans.MORE: How to refinance a car
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
