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Car Loans for People With Bad Credit: Do They Exist?


In short, yes. It is possible to get a car loan even if you have bad credit. However, there is usually a catch. The first catch is that they are very, very difficult to find. It can take quite a bit of time and energy to find one, and it can be an extremely overwhelming and frustrating experience.

Following are a few options to help make the process as painless as possible.

Consider Owner Financing

Most often when a private owner sells an automobile, they expect the pay to come in cold hard cash. The typical buyer will either spend cash they already have or take out a traditional loan to cover the cost. However some owners, in an effort to sell faster or easier, offer owner financing.

Since they typically do not have an option to check credit, buyers may get away with references stating they pay their bills on time. This means that if you messed up your credit in the past but currently do well paying your bills on time, you may have a better chance at financing through a private owner than you would otherwise. The only problem is that it may not help you one your credit report as it may not be reported.

Look for Dealer Financing

Occasionally dealers, especially used car dealers, will finance vehicles.  While they do a credit check, they often advertise themselves as much more lenient than traditional lenders.  Again, the theory is that they will be better able to sell cars by drawing buyers from a pool that may not be able to find financing elsewhere.

The catch here is that very often the interest rate is higher than it would be otherwise, but that is the price often paid with any type of car loan for those with bad credit.   Though it is not an ideal solution, it is better than nothing if you need an automobile.

Help Your Cause

Whether financing through the owner, the dealer, or you have found one of those rare bad credit loans through a traditional lender, there are some things you can do to help your case despite a poor credit history. The first thing is to offer as large of a down payment as possible. If at all possible save up as much as you can and offer that in good faith. It not only reduces the amount that has to be financed, but it shows fiscal responsibility.

Another good thing to bring to light is a stable work history. If you have been working at the same job consistently for some time, prove it. Bring in pay stubs or a note from HR that will show the lender that you have been holding down a steady job.

Get Help

Sites such as can always help make the job of finding a bad credit loan for a car less overwhelming.

They can do the hard stuff for you and help you find reputable lenders that offer such loans. Get started today.

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