FAQs about Buying a Car with Bad Credit
Here are the answers to the most commonly asked questions about buying a car with bad credit.
Is buying a car with bad credit possible?
Yes, buying a car with bad credit is certainly possible, especially with the help of our website. We have put together a network of lenders that specializes in applicants who are buying a car with bad credit. Our lenders are willing to work with applicants of all financial backgrounds. We can help you find a lender and a loan that will meet your needs even if you have significant credit challenges.
How do I sign up for buying a car with bad credit quotes?
You can sign up for quotes on bad credit car loans by filling out our short, online form. We will ask you for some basic contact information, and we will then provide you with a minimum of four free quotes on car loans. Buying a car with bad credit has never been more affordable because our lenders are forced to compete side-by-side for your business. This translates into lower rates for you. If you see a quote that meets your needs, you can then request that loan with the lender that offers it. Alternatively, you may save your quotes and return later. Learn more on our preparing to apply page.
What credit score qualifies as "bad credit"?
Generally, credit scores below 700 are considered to be poor credit scores. Subprime lending, or lending geared toward those with poor credit scores, usually targets consumers with credit scores of 620 and below. The definition of "bad credit" will vary by lender and the type of loan for which you are applying. If you have a credit score below 700, you might find buying a car with bad credit very difficult with dealership financing, as you might not qualify or your rates will be excessively high.
When buying a car with bad credit, what are my options?
If you are buying a car with bad credit, you have several options. You can use dealership financing, a home equity loan, third-party financing, or you can wait. Dealership financing will disqualify many buyers with poor credit scores, and your interest rates will usually be ridiculously inflated. With home equity loans, you can get reasonable rates if you have sufficient equity in your home. However, these loans are very risky for buying a car with bad credit, as you could lose your home if you miss payments. You can also use third-party financing to buy your vehicle, which is what we offer on our site. Third-party financing can usually offer the most competitive interest rates. Finally, you could simply wait to purchase your vehicle so you can take time to improve your credit first.
