How Can I Get A Car Loan With Bad Credit?

Tuesday, Dec 11, 18

I always like to answer questions that I get asked often. Financing and automobile with bad credit can be very difficult. Beware; not understanding how the system works can cause you big problems.

As President of Credit Education for, my first answer would be to understand how credit and credit scoring works. Ideally, consumers would work on improving their credit prior to attempting to make an automobile purchase. Many consumers have no understanding of how credit scoring works and think they are doomed for life. This is never the case.

I personally do not do auto financing but I know many people who do. I decided to go right to the source to determine the number one reason people get denied for automobile financing. According to Gary Lee, the General Manager at Century 3 Chevrolet, “it all depends on the customer, most often customers are denied due to their credit scores or lack of income.” The higher the credit scores, the easier it is to get financed. Mr. Lee offered a tip for those with impaired credit, “by making a 10%-20% down payment, the chance for approval is much greater.”

Here are a few tips for those of you who have impaired credit and don’t have the time to improve it:

  1. Make sure you get a safe reliable automobile that will last you the term of your loan. In most cases, your interest rate will be high due to the credit risk associated with your impaired credit.
  2. After you get your automobile, take the time to improve your credit. You can choose to improve your credit on your own or have the professionals help you. By working on correcting your credit, you will be in a much better position to get a great interest rate on your next car purchase.
  3. Be very careful dealing with the street corner auto dealers. Many (not all) sell cars for up to triple the value to desperate people. Making a poor choice today may cause you a boatload of issues in the future.

I hope this gives you a better idea of the challenges that exist when attempting to buy an automobile with bad credit.

About the Author

Credit Reporting / Scoring Expert, Chris McConville is the President of Credit Education at and founder of where he works as an Expert Credit Witness in both Federal and State Court. With working in the credit and mortgage fields since 1991, he’s dedicated to sharing his knowledge to educate consumers.

we know credit

Proud Member of

National Association of Credit Services Organizations


Download App on iTunes Download our App Google Play