Some tips for getting a car loan with bad credit include double-checking a recent credit report to for accuracy, dealing with any delinquent items or inaccuracies to improve the credit score and shopping around for the best terms, according to Bankrate. Car loans involve less risk to the lender than a home loan, which means even a less-than-desirable credit score doesn't have to make it impossible to get a car loan with reasonable terms.
It's also important to decide on a budget for the new car and stick to it, notes Edmunds. Buying a car that's outside of the buyer's price range makes it hard to make the payments, likely causing the credit issue to worsen. Consider a smaller class vehicle or skip on some extras like leather seats or a sunroof to save on payments.
It's also possible to prove creditworthiness outside of a credit score, particularly if the negatives on the credit report are from the past. Bringing in proof of steady income and some references is one way to prove creditworthiness; a letter from a landlord that the rent is paid in a timely manner or a family member who loaned money and was paid back on time are two other possibilities. Prospective buyers may have better luck with this approach at smaller, local financial institutions, such as credit unions.