Getting An Auto Credit When Your Credit History Has Not Been Perfect
Are you looking for a new car, but no one wants to finance you? Do you have late payments on your credit history, or possibly even a bankruptcy? Do not fear, because there are options out there for you. It is not entirely impossible getting an auto credit loan when your credit history has not been perfect. Here are a few options:
Save Up A Larger Down Payment
It is no secret that the larger your down payment, the less you need in the way of an auto finance loan. It is always beneficial to save up as much as you can before you purchase your vehicle. A larger down payment shows that you are making a sincere commitment to repaying your auto credit loan.
Get A Co-Signer
If your credit history is less than perfect, but you know someone who has outstanding credit, it may be a good idea to ask them if they might be able to co-sign for you on your auto credit loan. The higher their credit score, the better for you. Co-signers are usually family members or friends, but often a trusting employer may be willing to co-sign as well. They are a good bet if they know you well, but know that you have simply had a run of bad luck and are working to improve it.
If you do your research, you will find that there are many independent lenders for all kinds of loans available out there that are willing to finance just about anyone. Whether you have bad credit or even no credit at all, there is a company out there willing to finance you. Just search online for auto finance lenders for people with bad credit. Sometimes their auto finance rates can be higher (although not always), but they are pretty much guaranteed.
One of your very best options, however, is dealership financing. Many smaller dealerships offer an auto credit loan for people with all types of credit. Even if you have been turned down for an auto finance loan at larger dealerships, a smaller independent dealership may provide you with more options, especially if they do their own in-house financing. When a small, independent dealership finances someone with poor or no credit, both parties come out the winner. You walk away with a car, and they have made a sale. It really is that simple.
So even if your credit history has not been perfect, it is not impossible to get a car loan. It just takes a little work on your part, a little research, and you are on your way!