How To Get a Car Loan with A Poor Credit Score

When trying to get a loan your credit is one of the first aspects of your application that every lender will look at.

It may seem like an easy feat to have a high score, but in the real world, it is simply not the case.

how to get car loan with poor credit score

That is not to say that you cannot get a car loan with a poor credit score, but it does make it more of a challenge.

That is why we are here today, to discuss some tips and pointers on how you can ensure that you still get the loan that you need.

You may end up paying a higher rate of interest than someone with a higher score than you, but that is just something that you will have to live with. 

Know Your Credit Score:

The first thing that you should know is your credit score. It is an aspect of your life that you should already have been keeping an eye on and doing what you can to increase it.

The better your score is, the better the rates will be that you are offered from lenders. Getting a car loan with a poor credit score is challenging enough, so make sure that you improve any areas that you can before attempting to apply for one.

Save for a Down Payment:

If you have been following a budget you will already have some money set aside to make a decent down payment on the car. Having a poor credit score makes it even more important to be able to pay a good chunk of the asking price upfront.

The higher the down payment is, the lower the amount needed from the lender, and the less you will end up paying in interest.


The type, style, and year of the vehicle that you need will have to be chosen. It may seem like a promising idea to pick a flashy car that catches your eye when you drive onto the car lot, but you should always go in knowing what car you “need,” which will prevent you from buying something that does not fit into your long-term plans. 

Compare Lenders:

When trying to find an auto finance loan you will want to compare your options. Go online and find a car lot in your area that has what you are looking for.

Check out some platforms that are designed to find offers for you. If the car lot offers to finance, you will want to consider going through them but check around for the best rates before you commit to anything. 

Consider a Co-Signer:

If you are noticing that the rates the lenders are offering you are not as good as you expected you will need to consider having a co-signer. This is a person that has better credit than you and is willing to be held accountable if you should go into default on your loan. As with your credit score, the higher their rating is the better the deals that you will receive.

Obtaining a car loan with poor credit is not the easiest thing to do, but it is possible. You need to improve all aspects of your credit report before you apply for a loan and remember that if you plan to apply for a loan through multiple lenders you need to do them all within 30 days of each other.

Every time a lender runs a hard credit inquiry on your credit report you will take a hit on your score. If you have the various lenders run your score around the same time, your score will not take as big of a hit.

Having a low credit rating does not have to mean that you cannot get the car of your dreams. You will just need to spend a little more time saving for a down payment and finding a lender that will offer you decent terms.

With that in mind, all that you have left is to go down to the lot, test drive some vehicles, and drive home with the car of your choosing.