How can I get a good reliable car with bad credit?

Question

I have a good job. Due to high school and college credit cards, I have bad credit. I am working on restoring it but that takes time. I am in dire need of a good reliable car. I can get financed with a 20% interest loan which is crazy! Any other ideas?

Answer 1

With bad credit, you don't have many options. You could try saving some money from your job, getting a loan from one or more family members, or simply accepting a high-interest loan.

Actually, accepting a high-interest loan will be good for helping to improve your credit score. If you make payments as scheduled, don't miss any payments and don't be late, this is the best thing you can do to improve your score. So, look at the high interest rate as a relatively inexpensive credit improvement program

I suggest shopping for the best rates. Subprime lenders are harder to find but rates vary considerably.

Answer 2

Bad credit car loans are harder to get than good credit car loans, it just depends on the situation, also a huge factor that plays a role in a car loan is money down. If one puts a good amount of money down toward a car (a couple thousand) is going to increase the your chances of getting approved.

The amount of money down that you put towards your new car loan will not only make your application look better but it will also lower the risk for the lender. Bad credit or no credit is a risk for the lenders because of the previous credit history, it affects the way that they look at it. If one is putting no money down and looking to purchase a car even if it's inexpensive, it will be pretty hard to accomplish. This is because of the previous credit history, and the lender doesn't have any collateral. Also with a large amount of money down this will help get the attention of more lenders, getting you competitive rates, and a better chance to get approved for your new car.

Also take into consideration the vehicles that your are choosing, you must be flexible with the payments, but at the same time you have to make sure it's affordable and fits your budget. If it doesn't meet your budget and you finance the car anyways. You may end up getting it repossessed within a few months or years. Look for vehicles that book out to their value. A book out is the amount that a certain car can get loaned up to. So by choosing a car that doesn't hold its value may not be the right choice, because the bank may not even finance you on that particular car. Read more from: http://www.credit-card-gallery.com/article/188,Getting_a_Bad_Credit_or_No_Credit_Auto_Loan

Answer 3

Credit is essential. Unreliable payments and late pays and write offs will kill you in the new or used car financing at a reasonable rate. You have to now prove credit worthiness. Buy a reasonable car like a 10 year old Mazda Protege with cash. In six months trade it to Car Max buy a 4 year old Mazda 6 or Nissan Altima around 2003 year model. Pay on time. Don't buy anything you cannot pay in full each month!!!

Answer 4

You CAN get a decent car loan, even with bad credit. I've done it, but you'll have to look around. That's one of the BIG mistakes people make...just taking the first offer that's given to them when they go to the dealer. Be smarter than that.

WARNING: DON'T GO TO BUY A CAR WITHOUT HAVING THE LOAN FIRST. The auto dealers will eat you alive and give you a crappy rate. Shop around with lenders who specialize in bad credit car loans. It's a better option, you don't have to take what they're offering if you don't want it, and it's better than dealing with the car dealer's people.

There are usually some nationally based car loan companies who specialize in bad credit car loans who advertise on the page linked below...

http://www.axalda.info/bad-credit-car-loans.html

Answer 5

I am sorry but you will proabley have to pay the high rate, but its better to pay it now on a small car loan than to wait until you want to buy a house and pay it on that for many years.

If you buy a really cheap car like under $10,000 it really want change your payments that much anyway.

$10,000 @ 7% for 5 yrs = $200 a month
$10,000 @20%for 5 yrs= $265 a month

$65 is not a hugh deal to buy your credit back and you should be able to refinance after 2 yrs. Good Luck

10 yrs auto experience

Answer 6

Bad credit does not go away overnight. It takes awhile to get it and awhile to go away. If you don't like the interest rate, try getting a co-signer. The only other options would be about 60% down payment. The banks are not going to take a risk without some sort of collateral.