Where can I get a car loan with poor credit?

Where can I get a loan if I have bad credit? I struggle to pay my bills on time, so my credit isn’t great. I just got a new job and need a car.

Answer
Congratulations on the new job! Getting a loan is easier if you have a good credit score, but you still have options even with poor credit!
Regardless of what your credit score may be, always shop around for different interest rates and loan terms with different lenders, like:
  • Banks or credit unions: You can always visit your bank to apply for a loan or see what your options are.
  • Online lenders: Many online lenders specialize in loans for those with bad credit.
  • Dealerships: Dealers work with many different lenders, so they may be able to connect you with a lender that finances lower credit scores. Some car dealerships also have a financing department designated to assist those with bad credit.
  • Buy-here, pay-here dealerships: These types of dealerships usually don’t conduct credit checks, but their interest rates are higher. Their terms and conditions are also often less favorable compared to other lenders. You should only consider these dealerships if you can’t find a loan elsewhere.
Alternatively, you could also ask a family member or friend to cosign a loan. A cosigner with a higher credit score can help you get approved for a loan and get you better terms and conditions.
Besides using an auto loan to purchase a car, you can also use a personal loan to pay for the vehicle. You can apply for a personal loan through a bank, credit union, or online lenders.
If you get approved for a loan, lenders often require you to carry full coverage car insurance. If you want to save money, the Jerry app is a good place to start. A licensed broker that offers end-to-end support, Jerry gathers affordable quotes and helps you switch plans. The average user saves $879 a year!
Phoebe Mah
Answered on Nov 24, 2021
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