How Can I Get Car Financing with a Bad Credit Score?

Credit Scores

Buyers often come to us wondering how to get a car loan with bad credit. The good news is that it’s often much easier than you might think. Whether you’re in the market for a new vehicle or a used one, our finance center at Sam Leman Chrysler Jeep Dodge of Peoria will walk you through the process and explain all your options to you. Here is what you need to know about bad credit car loans and how to get one for yourself.

Tips on How to Get a Car Loan with Bad Credit

Before you start pursuing a bad credit car loan, it can be helpful to take some preliminary steps to ensure you get the results you need and make the best decisions for your financial situation. If you want to know how to get a car with bad credit, start here:

  • Figure out how much you can afford. Remember that the costs of car ownership go beyond the sticker price. There are also expenses related to registration, insurance, gas, and upkeep. Factor these into your calculations when determining your vehicle budget.
  • Be realistic. Shop for cars that make the most sense for your budget. You don’t want to be saddled with a vehicle you ultimately can’t afford.
  • Repair your credit before applying. Check your credit report with any of the major credit bureaus. If you spot any mistakes on your report, dispute them right away. Correcting even a small mistake can boost your credit score, which will only increase your creditworthiness to potential lenders.
  • Aim for a larger down payment. When at all possible, buyers with bad credit should try to put down a sizable down payment. Not only will lenders be more willing to approve you for financing, but you’ll end up with a smaller loan balance to pay off. It’s a win-win.
  • Be ready to compare rates from multiple lenders. People seeking bad credit car loans are often surprised when they are approved by more than one lender. This is a good thing, as it allows you to compare rates and find the lowest one.

Keep in mind that getting approved for financing when you have bad credit can be beneficial for your credit score. As long as you keep up on the monthly payments, your credit score will almost certainly improve over time, and that can have positive effects on everything from obtaining mortgages and new lines of credit to securing housing or even a new job.

Finance a Car with Bad Credit at Sam Leman Chrysler Jeep Dodge of Peoria

Now that you know how to get a car loan with bad credit, take the first step by applying online for pre-approval. You might also want to take advantage of our vehicle specials to help you save on your upcoming purchase!

Sam Leman Chrysler Jeep Dodge of Peoria 40.7841096, -89.6203091.