How to Find a Car With Bad Credit Problems
- 1). Speak with a loan specialist at your bank. If you are currently employed and have a checking or savings account in good standing, then your bank or credit union may approve you for a car loan. Please note that you may be required to meet other requirements before your bank approves you for a loan and you may also need collateral in order to secure your loan.
- 2). Search for a car on the Internet. There are a variety of companies and lenders that offer special car-loan financing for people with bad credit. So, even if you have late payments, judgments, bankruptcy or a repossession in your credit history, you may still qualify for a loan through a special financing lender.
- 3). Locate an in-house financing dealership in your area. Some car dealerships offer in-house or buy-here, pay-here financing programs for those with bad credit. With in-house financing, the car dealership is the lender who collects your monthly payments--rather than a financial institution. Fortunately, these types of car lots normally do not perform a credit check on applicants.
- 4). Find an appropriate co-signer. Consider asking a family member or friend to serve as a co-signer on your application. Quite often, lenders will approve someone with bad credit if the person has an appropriate co-signer listed on the application--someone who has an acceptable credit score and income.
- 5). Pay cash for a car. If you have a sufficient amount of money in your savings account, perhaps you should consider paying cash for a car. Many car dealerships have cash cars for sale--or you can purchase a car at an auction or simply browse through the classified section of your local newspaper to find a car.
