The Big Bad Credit Score: How to Buy a Car With Bad Credit

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There are over 268 million cars on the road in the United States. That's a ratio of almost one car to one person given that the population of the country is only 327 million.

It probably comes to no surprise to you that cars are so popular. After all, they make our lives easier.

They let us pick up our kids without hassle. Help us get to work quickly and ultimately, enable us to go where we want when we want to.

That's why it can be difficult if you have bad credit and you're having trouble getting a car.

To help you with your car buying woes, below, our team has compiled a list of practical tips that can help you buy a car with bad credit.

1. Build Your Credit

This tip may not be one you want to hear, but ultimately, if you can afford to wait to buy a car when you have bad credit, you should. No matter how you slice it, you're going to get a worse deal purchasing a vehicle with bad credit as opposed to buying one with good credit.

For that reason, people should take the time to rebuild their credit before making large purchases. That way they don't end up overpaying in the long run.

2. Analyze What the Interest Rate Difference Is

To get the full picture of how much you're going to overpay when you have bad credit versus good credit, it's good to understand the lowest interest rate your lender offers and compare it to what you get offered.

When you have those numbers to compare, ask your lender how much more you're paying over the lifetime of your loan with your interest rate versus how much you'd pay if you had qualified for their best rate.

Knowing that number will give you more insight which will enable you to better decide whether to purchase a car now or wait until you rehabilitate your credit.

3. Seek Out No Credit Check Loans

If your credit is bad to the point that you're having trouble getting traditional lenders to give you any money and you need a car now, you can always pursue no credit check loan options.

A no credit check loan will typically just ask that you're over 18, have a checking account, and a form of income. If you meet those requirements, you could get approved for as much as a few thousand dollars which should be enough to get yourself a basic vehicle.

Beware of interest and fees on no credit check loans as they can be high. Also, beware of loans that require collateral.

4. Prepare to Make a Bigger Down Payment

If you're having trouble securing financing for a car and come up with a larger down payment you may be able to get a lender to help you out.

Remember, the more money you put down on a vehicle, the less money a lender has to loan you and the less risk they'll have of not getting their money back. Anything you can do to reduce a lender's risk will increase your chances of them offering you something.

5. Look for Non-Profit and Government Options

Non-profit and government entities realize the importance of owning a car in the modern age. For many, owning a car is a necessity to make money given sub-standard public transit in certain areas.

These not-for-profit and government entities have consequently established programs that help some low-income people secure financing for a vehicle. Note that programs are not available in all states.

You can learn more about getting low-income assistance for purchasing a car here.

6. Beware of Predatory Dealerships

There are a lot of dealerships out there that specialize in selling to people who are poor and/or those who have bad credit. These dealerships will draw you in on the promise of being able to get you into a car right away but what you get in exchange for that promise is a horrific deal.

You can expect predatory financing which means astronomical interest rates and fees. You can also expect to walk off of the lot with a low quality used vehicle that may end up being more trouble to you than it's worth.

We understand the desperation some people might have to get into a car any way possible. Still, is getting into one really worth further damaging your credit by falling delinquent on excessive bills?

7. Read Your Paperwork Carefully

At the end of the day, it's hard to find a good deal when you buy a car with bad credit. Because of that, you always need to watch out for scams, predatory conditions, and other pitfalls that may appear in your agreement.

Take your time to read your purchase contract before signing it. Be prepared to ask your dealer and/or lender questions before taking on financing.

The better prepared you are to buy a car with bad credit, the less likely you'll end up regretting your purchase decision.

Wrapping Up How to Buy a Car With Bad Credit

If you need to get into a car but have bad credit, we recommend leveraging our how to buy a car with bad credit tips above. Each of them will make your car buying experience as easy and as valuable as possible given the circumstances.

Remember, always keep in mind that the best way to deal with bad credit is not to find workarounds to get things done with it but to work hard to improve it!

Want more of the best advice on how to get the challenging tasks in your life done? If so, check out more of our content on today!


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