How to Buy a Car When You Have Bad Credit

December 12th, 2014 by


A car is indispensable for most people. Unless you live in a major metropolitan area where bus or subway service is widespread, you have to drive to get anywhere you want to go, whether it’s to work, the grocery store or the doctor’s office. However, if you have bad credit or a history of bad credit, you may have a hard time buying the car you need.

Poor credit doesn’t have to keep you from buying a car. There are several things you can do to get the car you need when you have a spotty credit history. Here’s how you can buy a car even when you have poor credit:

Save as Much as You Can

Cash is king. If you can’t get the credit you need, you can buy it with cash. Unfortunately, saving all the cash needed for a new car is a bit out of reach for most people – especially those already dealing with a bad credit history. You don’t have to save up the total cost of the car. Just save as much as you can. A larger down payment can make you more attractive to lenders, increasing the chances of getting the financing you need.

Get a Co-Signer

Even if your credit is poor, you may be able to get the financing you need with a co-signer. Your spouse, your parent, a family member or even a good friend may be willing to sign with you on a loan. If the person has good credit, having the co-signer may be enough to get your loan approved. The outcome depends on how poor your credit history is, how good the co-signer’s credit history is, and how stringent the loan standards are.

Shop Buy Here Pay Here

Buy Here Pay Here dealerships offer financing to those who have poor credit or even no credit. When you shop Buy Here Pay Here in Rhode Island, you can get the financing you need for a variety of new or used cars. You may have to pay a slightly higher interest rate on these loans than your typical used car loan, but the trade off may be worth it in order to get the financing that no one else will offer you.

A car is too important to go without. You don’t have to let your spotty financial history prevent you from getting this indispensable transportation. If you aren’t able to save up enough money to make a dent in the purchase price, applying for a loan with a co-signor or shopping with a buy here pay here dealership can help you get the financing you need.