Customers can get an auto loan by looking for auto dealers that are open to working with those who have bad credit, as stated by Edmunds. These lenders may advertise that they look at income over credit or provide financing themselves on new and used cars.
Here are some steps to follow when looking for an auto load when you have bad credit.
- Look for the right dealership
- Check credit score
- Get pre-approved
- Bring the correct documentation
Check around with all of the local car dealerships, even those that sell new cars. Some may offer dealer financing with a large enough down payment. Others, like "Buy Here, Pay Here" lenders, sell as-is used cars. However, they make loans on these cars at much higher interest rates and the cars may have been a previous repossession, as stated by Credit.
Go to Credit Karma and set up an account. Customers can get a look at their credit score and their bad credit marks to know what to expect when shopping for a car loan.
Fill out some pre-approval applications online. Dealers may offer a pre-approval application through their website that customers can fill out without having to go to the dealership in person. This helps customers narrow down which dealers are their best options.
Bring along important documentation to show dealers that they can reliably expect the loan to be repaid. This includes, recent pay stubs, utility bill, driver's license and a list of three personal references.