How do I get a car loan with poor credit?

I have poor credit. I need a car loan to get a car so that I can get to my new job. How do I get a car loan with poor credit?

Answer
While getting a car loan with poor credit, is challenging, you do have options!
To help you get a car loan, consider:
  • Getting a cosigner
  • Putting down a larger down payment
  • Shopping around with multiple lenders, especially lenders who work with lower credit scores
A cosigner with better credit can help you get a better deal. The lender will look at their credit score in addition to yours. A lender is more inclined to offer a loan to you with a cosigner because two people are now responsible for loan payments, so you pose less of a risk to the lender. This does mean that if you can’t make a payment, your cosigned is responsible.
A larger down payment also poses less risk because the total amount of the loan will be less. This poses less risk to the lender and helps you save money on interest.
Everyone should shop around when looking to buy a new car. Talk to your bank, local credit unions, and dealerships that offer in-house financing to find a deal that works for you. Keep in mind that your loan will likely have higher interest rates because of your credit score, but you can still shop to find the best deal for you.
To help you save money for that larger down payment, use the number-one-rated car insurance app, Jerry, to help you save money on car insurance. Jerry gathers personalized rates from more than 50 top providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free. Jerry customers save an average of $879 a year!
Lauren Smith
Answered on Nov 20, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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