How can I get a car loan with a bad credit score?

Is it possible for me to get a car loan when I have a bad credit score? I’m starting college this year, and I need a car to get to school. Unfortunately, my credit score isn’t great.

Answer
Congratulations on starting university! While you can get a car loan with bad credit, you should be aware that you’ll probably have a high interest rate and inflexible terms. Luckily, you can use these tips to find a reasonable car loan with bad credit:
  • Use a cosigner to help assure lenders you’ll be able to make your payments. A cosigner with good credit can go a long way in helping you secure a reasonable car loan.
  • Shop around for a lender with good terms before signing any agreements. The first lender you find will rarely be your best option, so take some time to find a lender you like!
  • Credit unions may also be able to help you with a reliable short-term loan. Since they’re nonprofit organizations, they’ll likely offer better terms with much lower interest rates.
  • Make a large down payment to reduce the risk your lender takes on. When you make a big down payment, your rate will usually be lower, and your interest may even decrease as well!
Once you get your loan and buy your car, you’ll also need a new insurance policy. Luckily, Jerry’s here to help you find the coverage you need at the lowest possible rate.
A licensed broker, the Jerry app can help you compare personalized quotes from over 50 top providers like Progressive and Nationwide for free. When you find a better plan, Jerry can help you buy your new coverage and even help cancel your old policy.
Phoebe Mah
Answered on Nov 23, 2021
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