Trying to finance a car when you have bad or poor credit can be a difficult challenge. Your personal credit is something car lenders look very closely at when they are determining to approve or deny your application. The good news is that there are several things you can do to improve your chances at getting approved even though your credit might not be the best.
The first thing you should do is to get a copy of your credit report so that you can truly get an idea just how bad your credit situation is. You need to look at your credit scores from each of the three credit bureaus to determine just how low your score is. If it is in the low five hundred range or below then you have some serious work to do, and if it is in the mid five hundred to six hundred range you will have an easier time but you will still have to put in some serious effort. After getting a grip on your scores, you then need to analyze your entire credit report to see if there are any errors, late payments, defaulted accounts, or bankruptcies. These are the kinds of negative marks a lender will use to disqualify you, and if you can take any action to resolve these kinds of marks then you should go ahead and do so.
If you don’t want to try and improve your credit you may still may have a shot at getting a car loan despite your bad credit. These are what are called “bad-credit’ and “sub-prime” lenders, and these kinds of lenders specialize in providing loans to individuals with bad and poor credit. You can find these sorts of lenders quite easily online, and once you identify a few that look promising you must then make sure the company is in fact who they say they are because many websites appear as if they are legitimate when in reality they are not. Your chances of being approved after finding a company that checks out is still not the greatest, and if you do get approved you’ll end up paying a high interest rate as well as a number of fees. This may be your only option and if that is the case then just be aware that you can always refinance later on if you improve your credit.