Can you get a new car loan with bad credit?

What are some things I can do to get a new car loan when I have bad credit? I want to find the best rates available, but I don’t have good credit.

Answer
Even with bad credit, you can still get a new car loan! While it can be a little more difficult to find a loan with favorable terms, you definitely have options. Here are some things you can do to improve your chances of getting approved when your credit score is low:
  • Get a cosigner with excellent credit. A cosigner can help you qualify for better rates and terms.
  • Reduce your debts. Lenders look at your debt-to-income ratio when determining rates, so paying off as many outstanding debts as you can is beneficial.
  • Save for a large downpayment. Often, lenders will offer better rates if you’re able to put a large amount of money down on your new car.
  • Shop around and look at rates and terms with different lenders to make sure that you’re getting the best rates. Some lenders specialize in borrowers with bad credit and may offer you more favorable terms.
While you’re shopping around for your car loan, consider shopping for better car insurance rates, too! The Jerry app can show you your options in a comprehensive list, making it easy to compare rates and coverages. Just download the app and answer a few quick questions and Jerry will help you switch to a new policy that could save you hundreds!
Liz Jenson
Answered on Nov 17, 2021
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