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How to Get an Auto Loan When You Have Bad Credit

how to get a auto loan with bad credit

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When you have poor credit, it may feel like getting any loan is out of your reach.

But, no matter what your credit looks like, you need a way to get to work and to all the other places that life takes you. And the good news is, it’s possible to apply – and be approved for – an auto loan, even if you have less-than-stellar credit.

If you’re in the market for a new car and are wondering how your credit will impact your ability to get financing, it’s time to find out how and where to get an auto loan. Start preparing for what you need to know about auto loans for poor credit now.

How Your Credit Score Affects Auto Loans

When you have a low credit score, you may be unable to qualify for loans like mortgages. Fortunately, for auto loans, you can typically get financing even with a lower score, the reason being that your creditors have a very tangible and accessible piece of property to reclaim should you default.

However, as with most types of lenders, a higher score will get you the most preferential rates and terms. Lenders typically offer the best deals to applicants with scores over 750; keep in mind that these rates are often what you see in advertisements. Once your score is under 650, you’ll likely be on the hook for higher interest rates.

Where To Look For An Auto Loan

Don’t assume that your credit score is going to prevent you from getting a loan with a prominent lender; one of the worst things you can do is find and commit to a subprime auto lender who will end up taking advantage of your lower score. In fact, perhaps the most important thing to remember when you get an auto loan is to shop around – as much as possible.

If you have excellent credit, you can typically apply for a loan right at the dealership, who in a sense acts as a broker for different auto lenders. If you have poor credit, instead, first complete an application with online lenders. Once you’ve filled out the form, they’ll let you know what interest rate you qualify for and how much you can borrow for a car. This will give you a guideline for your car search, but will also help support your case when you are at a dealership, as you already have a rate proposed.

There are plenty of online lenders in the market that offer auto loan to borrowers with bad credit. You cannot blindly trust them, however. Many online lenders pose as car financers and try to borrowers by providing fraudulent advice on how to get an auto loan with bad credit. Don’t fall for the likes of scammers.

To make sure that you do not fall into wrong hands in hunger of your car keys, we are going to talk about two of the best online lenders that provide auto loans. The best part is that they don’t give you cold stares in case you tell them that you’ve got a bad credit score. This uniformity in treatment makes these two lenders very trustworthy. As for the service, they offer the best in class customer support.

Without further ado, we are going to delve into the deep pool of details for both of these online lenders—namely Auto Credit Express and My Auto Loan.

Can I get my Dream Car with a Bad Credit?

When it comes to finally owning your dream mean machine, you try your level best to finally get there. You try to make as much money as you can to strive for it, but a few blemishes on your credit report shatter all imaginary clouds in your dream. Don’t worry, it’s not like one cannot shoot for the stars just because s/he has a bad credit score.

All you have to do is learn how to get an auto loan with bad credit and we’ll help you there. With these two online lenders, all you have to do is take your pick and apply. You’ll definitely have your say, we can guarantee that.

Down below are two lenders that are going to help you accomplish the mission “How to get an auto loan with bad credit”. Let’s begin…

1. Auto Credit Express

When it comes to bad credit auto loans for good people with supreme aspirations, Auto Credit Express comes out to be the vrooming Messiah. This auto loan lender specializes in offering loans to people with bad credit. If you have applied for an auto loan at various places and failed to qualify because of bad credit, you won’t be treated the same here.

With Auto Credit Express, you can get an auto loan irrespective of your credit score. This lender specifically offers bad credit auto loans. Let’s look at the specifics:


If you want to learn how to get an auto loan with bad credit, remember to read between the lines. Here are all things you must be before applying for an auto loan from Auto Credit Express:

  • Minimum Credit Score: 400
  • Borrower’s Minimum Age: 18 years
  • Employment status: Fixed income of $1,500 per month
  • Vehicle Type: New/ Used (not more than 10 years old)

If you feel that you can qualify for an auto loan with bad credit by matching given eligibility criteria, read away for terms and rates.

Terms & Rates

  • Loan Amount: $3,500 to $45,000
  • Payback Period: Up-to 72 months
  • Interest Rate: Fixed
  • APR: Variable, according to Credit Score


  • Origination Fee: $0
  • Prepayment Fee: $0
  • Application Fee: $0
  • Late payment Fee: Yes

Now you know how facts and figures pan out when it comes to auto credit express. So if you wanted to learn how to get an auto loan with bad credit, you should definitely apply for one from Auto Credit Express.

Apply Now!

2. My Auto Loan

This isn’t an auto loan that is exclusive to borrowers with bad credit, but My Auto Loan won’t mind if your credit is bad. My Auto Loan offers opportunities to get a loan for new, used, refinanced and lease vehicles. It is definitely worth having a look:


  • Minimum Credit Score: 500
  • Borrower’s Minimum Age: 18 years
  • Employment status: Fixed income of $1,800 per month
  • Vehicle Type: New/ Used (not more than 10 years old)

Terms & Rates

  • Loan Amount: $8,000 to $100,000
  • Payback Period: 24 to 84 months
  • Interest Rate: Fixed
  • APR: 2.70% – 27% Variable


  • Origination Fee: $0
  • Prepayment Fee: $0
  • Application Fee: $0
  • Late payment Fee: Yes

My Auto Loan is a good choice in case of claiming auto loans for borrowers with bad credit. Check it out!

Apply Now!

It’s also advisable to check with your local banks or credit unions as these lenders will often offer the best rates on auto loans. You’ll see what rate you qualify for, and then will have yet another basis of comparison with online lenders and the dealership.

How to get an auto loan with bad credit
Even with poor credit, you can find the right loan.

Ultimately, you may be able to obtain your loan from the dealership by getting these other approval numbers. You have proof that people are willing to give you a loan, so the dealer can choose to offer you an even better rate if they want your business.

How To Protect Yourself When Getting An Auto Loan

If you shop around as much as possible, you can at least rest easy that you’ve gotten the best rate and terms available. But are you missing some essential techniques that may help improve your auto loan terms even more? Don’t hide behind your credit score, and make sure you have a voice when it comes to your loan.

Don’t Fear Negotiation

When you have a low credit score, lenders may take advantage of this by not offering the lowest rates off the bat. They know you need a form of transportation, and you’re probably just happy that someone will help you finance it.

That’s why it’s crucial that you take control and ask for lower rates and better terms. The worst that happens is that they say no, the best that happens is that they say yes.

Look For Shorter Terms

You know that because of poor credit you’ll be paying higher interest rates, but you can minimize the total interest you pay with a shorter loan term. You’ll have higher monthly payments, but will pay less interest overall, meaning you’re not spending more than the car actually costs in the long run.

Put More Money Down

As with any loan, if you can increase the amount of your down payment, you’ll get better terms from the lender. Cars depreciate rapidly, so the amount you may owe five years into an auto loan could be more than the car is even worth. Instead, the more money you can put down up front, the more of a guarantee that you won’t find yourself in a bind in the future.

Pay Extras In Cash

There are various fees involved with buying a car, from registration to warranties to taxes. You may have the option of bundling these amounts into your total financing, but then you’ll also be paying interest on them for the foreseeable future. Instead, pay as many of these charges out-of-pocket as a one-time cost, so you maintain a sustainable balance between what your car is worth and what you owe.

Make Sure Everything Is Set Before You Drive Off The Lot

You don’t want to leave a dealer in your new car with your financing in a “contingent” or “conditional” status – the Federal Trade Commission (FTC) refers to this activity as “yo-yo scams.” Unfortunately, unscrupulous dealers use this technique to saddle you with a higher rate than the one you agreed to or to increase your monthly payments once the car is in your possession.

If you know you’ll be applying for an auto loan in the future, start taking steps to improve your credit with The Credit People. Get helpful tips delivered right to your inbox and sign up for our newsletter now!


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