3 Secrets for Getting Approved on a Car Loan for People with Bad Credit

Get Car Financing
Even with poor credit.

January 27, 2012

Getting a car loan for people with bad credit is not easy. Most lenders will automatically raise interest rates, and even then you might not get a loan. Here are a few tips you should remember before you apply for a car loan with bad credit.

  1. Get in touch with online lenders. There are websites that will deal with bad credit customers only, and they offer the best bad credit loan options for you. This means they already know that you have a bad credit history and they are already willing to give you a loan. This is half the problem solved. You might still have to pay a higher interest rate, and you will still not get the desired loan amount that you wanted. But approval is in seconds and the cash appears in your account in a single day.
  2. Get a guarantor (co-signer) who will sign on the loan for you. This essentially means that the guarantor is taking on the loan with you. You will need to get a family member or friend who has a good credit score to sign on with you. This process will work only if the guarantor has a good credit history. 
  3. Offer security for the no credit history car loan. This will reassure the insurance company that you are ready to pay back your loan when the time comes. Most private lenders and cooperatives will be more than ready to give you secured bad credit loans at a lower interest rate as compared to banks.

Take the time to check out online calculators which will give you an accurate idea of the interest rate you will have to pay if you're a bad credit customer. It will help you negotiate for a better deal.

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