How to Get a Car Loan with Bad Credit

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If you need to know how to get a car loan with bad credit, you’re certainly not alone. Plenty of Apex drivers who are in the midst of repairing their credit will need to ask this question when in need of a new vehicle. As always, the team at Hendrick Chevrolet Cary is here to support you! Review our top tips for how to get a car with bad credit, below. You’ll quickly learn that getting a car loan with bad credit isn’t as daunting as you might imagine.

Getting a Car Loan with Bad Credit: Pre-Approval

At Hendrick Chevrolet Cary, we make it a priority to ensure all of our customers can enjoy a transparent, hassle-free experience when securing financing. The first step for how to get a car loan with bad credit through our dealership is to apply for pre-approval online. Once you’re pre-qualified, a member of our finance team will work directly with you to find a workable payment plan.

How to Get a Car With Bad Credit: Preparatory Steps

You can increase your chances of getting a car loan with bad credit by taking these preparatory steps. They might even help you secure a better rate!

  • Assess your finances to create a realistic budget. This amount should encompass more than just how much you can afford to borrow – think about other expenses like annual registration fees, car insurance, maintenance costs, and gas costs.
  • Save up a larger down payment. If your credit isn’t great, a larger down payment will help lenders to see you more favorably as a borrower. Additionally, a larger down payment means you’ll have a smaller loan balance to pay off, leading to less interest paid overall.
  • Check your credit report and make improvements where possible. If you catch any errors, you should absolutely dispute them because they could be dragging your credit score down. If you have any outstanding debts, start paying them down where possible – even making a small dent can help your credit score.
  • Don’t buy more car than you really need. Your focus should be financing a car with an affordable payment (even if it’s not your dream car), and one that you can afford to take care of in the coming years.
  • Shop around with lenders. Don’t assume that the first lender to approve you will be the only one. Apply with a handful of lenders so you can compare the rates of those who approve you.

Increase Your Chances of Getting a Car Loan with Bad Credit

Following the aforementioned tips can carry you a long way when exploring how to get a car loan with bad credit. But when it comes to making a larger down payment and finding an ultra-affordable ride, Hendrick Chevrolet Cary is here for you. For starters, you can value your trade to discover how much your current vehicle is worth. Even if it’s only a few hundred dollars, you can use the extra cash to increase your down payment in an instant.

While you might be drawn to the perks of new vehicles, we strongly recommend considering used vehicles and certified pre-owned vehicles. There is a lower chance of becoming upside-down on the loan because the monthly payments will be lower, and used vehicles lose value more slowly than new vehicles. We have lots of recent model years at Hendrick Chevrolet Cary, so you can get a vehicle with the modern features you desire at a reduced price!

Does a Car Loan Build Credit?

Absolutely! You might be feeling a little down about your credit situation, but here’s a positive spin on it: Taking out a bad credit car loan can actually improve your credit score over time! Think of this as a chance to reset your credit. Make your monthly payments on time and in full, and you’ll definitely start to see steady improvements. After a few years, you might even be able to go after your dream car.

Contact Us for More Car-Buying Tips

Whether you need to know how to get a car with bad credit or you’re wondering about car loan interest rates, Hendrick Chevrolet Cary is here to guide you. Contact us at your convenience with any lingering questions before applying for financing!