So you have bad credit and you need a new car, what options do you have? You already know most lending institutions are going to turn you down for an auto loan or any type of loan for that matter so your best shot is to talk to the dealerships about auto financing. Many dealerships have loan programs that work through their parent companies so they can afford to offer loans, with a large interest rate attached to them. Auto loans for bad credit usually involve a simple process of verifying your income, checking your credit, and getting you into a vehicle. There may be some lenders that wont even run your credit and they will offer you the loan based on your ability to repay the loan and to pay a large interest rate like 18% or even higher.
Always request a copy of your credit report before you apply for an auto loan so you can weed out some of the lenders that will and will not work with you. Dealing strictly with bad credit lenders can hurt you because they are used to desperate individuals and they won’t budge too much on the interest rate. Your best shot may be to talk to your bank or your insurance company to see if they can help you out.
You should also discuss some options with them about your credit situation and what you can do to repair it. They may be able to offer you unsecured credit cards for bad credit that can improve your credit score. As you make timely payments to the credit card lender, it will repair your credit over time. You also need to work hard to pay off any other outstanding debts that may be hurting your chances of getting a decent interest rate on a loan.