How to Find Car Loans for People With Poor Credit

Credit problems can make it difficult to find a dealership or car lot to purchase a car. The car dealerships may use in-house financing or have a partnership with a bank or financing company to provide loans for their vehicle purchases. The credit requirements for the financing companies may vary greatly, and knowing how to find a dealership that has options available for bad credit borrowers will save you time and money.

Instructions

1

Search for dealerships that do not do credit checks or who specialize in bad credit borrowers. These dealerships may be of a buy here, pay here variety where the dealership finances the car loan itself. Other dealerships may have deals with financing companies that offer bad credit loans in return for higher down payments or higher interest rates.

2

Call dealerships you are interested in and ask to speak with the finance managers or the financing department. While the dealership may be unable to give you a specific credit profile or score that they are looking for, the department can tell you generally whether bad credit financing is offered.

3

Secure your own financing through a credit union or a bank before going to a dealership. Talk to the loan officer in person if possible and explain the circumstances surrounding your poor credit situation. Credit unions and smaller banks may have bad credit loan products or may be willing to work with you, if you prove you can make the payments.

4

Ask a friend, family member or spouse with good credit to co-sign the loan with you. Co-signing makes that person responsible if you fail to make a payment. You benefit from a co-signer by qualifying for a loan you may otherwise be unable to do. However, it may be hard to find a co-signer since the loan affects the co-signer's credit as well.