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

What can I do to increase my chances of getting a car loan with bad credit? I work two part-time jobs, but I’m behind on bills. Because of this, my credit is bad. I want to buy a car to hopefully find a better job.

Phoebe Mah · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Having a car can definitely open up opportunities for you, especially for employment. Getting a new car loan with bad credit may be tricky since lenders often consider you a risky borrower, but rest assured that there are ways you can increase your chances of getting approved for a loan!
These include:
  • Shopping around: If you can’t get approved by traditional lenders, there are online or local lenders who specialize in working with people who have poor credit.
  • Getting a
    : Ask a relative, like an aunt or grandparent, if they would be willing to cosign a loan with you. A cosigner with good credit will improve your chances of getting approved, along with a lower interest rate.
  • Make a larger downpayment
    : If you can make a downpayment of at least 20% on your new car, you’re more likely to be approved.
  • Purchase a used or less expensive car: The less money you’re looking to borrow, the greater likelihood you have of approval from a lender.
Since you are interested in purchasing a car, don’t forget to include car insurance costs. A great way to find insurance is with the
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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.

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