Where can I get a good car loan?
I’d like to get a car loan, but I’m struggling to find a good offer from a lender—probably because I have a bad credit score. Where should I go to get a good car loan?
It can be tricky to find a good car loan, especially if you have less-than-stellar credit. Banks and dealers won’t usually take on risks in their lending, so you’ll be unlikely to find good terms with them. Luckily, you still have a good chance of getting a good car loan from credit unions or third-party lenders.
Credit unions are nonprofit organizations that typically offer relatively good terms and low interest rates. That said, you’ll need a membership before you can join. While requirements for membership vary between locations, you’ll usually be eligible if at least one of these applies to you:
- Live in the specific area they serve
- Work for specifically outlined entities
- Have a family member in the credit union
- Are an active member of a labor union
Alternatively, you could find a good car loan from a third-party lender. While independent lenders usually offer unreasonable terms and high interest rates to borrowers with bad credit, you can often secure a better deal by:
- Finding a cosigner with good credit
- Making a large down payment
- Comparing quotes from multiple lenders before settling
While banks and dealerships can be great resources for financing cars, they’re also a bit more inflexible when it comes to lenders with bad credit. If you can’t find a loan with reasonable terms—try not to worry! There are plenty of ways to offset the price, like saving on car insurance with the number-one-rated car insurance app, Jerry.
A licensed broker, the Jerry app helps users save an average of $879 a year on car insurance. Just download the app, answer a handful of questions, and Jerry will help you compare personalized quotes from over 50 top providers, like Allstate and Nationwide, for free.
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