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Can I Buy A Car With Bad Credit?

If you have bad credit, it may be difficult to get a loan for buying a car approved, but it is not impossible. 

Usually, traditional lenders may be unwilling to lend you if your credit score is in the sub-prime range (under 620). In case you get approved, you may be required to make a bigger down payment and pay a higher interest rate to compensate for the high risk of default. But some methods are there to buy a car with poor credit.

Luckily, some lenders may be willing to lend to borrowers with a limited or poor credit history. You can use this option to build a better credit score over time by making timely payments, which the lender reports to credit bureaus to help you improve your credit score. 

What is considered bad credit? 

There are different definitions of what constitutes bad credit. Different lenders and credit bureaus have credit tiers that they use to group borrowers based on their credit status. 

The FICO credit score classifies credit scores from 300 to 579 in the poor credit score range, whereas a credit score of 580 to 669 is considered fair. This credit score model considers any score below 670 as bad credit. Credit scores in the lower end of the scale are classified as subprime, and borrowers in this credit score range may be ineligible for most car loans.  

Apart from using credit scores to approve or reject car loans, auto lenders also use credit scores to determine the terms of the loan. These terms may include interest rate charged, down payment required, loan duration, and the loan amount. 

Where to Get a Car Loan with Bad Credit

If you have bad credit, you may apply for buying a car loan with the following lenders: 

Online lenders

Online lenders may have simpler loan approval processes since they have lower operating costs than traditional banks with physical branches. Their banking services are fully automated, and you can access auto loans without visiting a physical bank. 

Some lenders allow borrowers to prequalify for auto loans and get a quote for their loan in minutes. However, these lenders may have higher interest, higher payments, and shorter loan terms to minimize their risks. But at the same time it has higher chances of loan approval.

Work with a bad credit car dealer 

If you need a car for your daily activities but your credit score is in the poor to average credit score range, you should consider working with a bad credit car dealership. These dealerships focus on poor-credit buyers, and you can get your car loan approved even with a shaky credit history. 

Some of these dealers do not have credit checks, and you can get approved if you have proof of steady employment, proof of residence, and down payment. It is easy way to get your work done inspite of bad credit history.

Buy Here Pay Here Dealership

If you can't get your car loan approved to buy a car with a bad credit, you should consider working with a Buy-Here, Pay-Here dealership. Buy Here Pay Here dealerships have relationships with various banks and credit unions, and they can help you get your car loan approved. 

Car express Prescott is a Buy Here, Pay Here dealership, and your past credit history and repositions do not affect your eligibility for car loans. If you are looking for car dealerships that work with bad credits near me, call us on (602) 688-CARS or complete this credit application to see how much you qualify to get.

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