How do you get a small car loan with bad credit?

What can I do to get a small car loan with bad credit? My credit score isn’t great, but I really need a car. I found one that’s cheap enough to buy if I qualify for a loan.

Answer
It’s great that you’ve already found a car that works for you! There are a few things you can do to improve your chances of getting approved for a small car loan with bad credit:
  • Make a large downpayment. Many lenders will offer you better terms if you can put a large amount of money down.
  • Reduce your debts. Lenders will often look at your debt-to-income ratio when determining rates. It helps to pay off as many outstanding debts as you can before applying for a loan.
  • Get a cosigner with excellent credit. A cosigner can help you get better terms and lower interest rates.
  • Shop around and look at rates and terms with different lenders. Some lenders specialize in borrowers with bad credit and may offer you more favorable terms.
While you’re shopping around for a 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 coverage options. 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
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free