Q: What does my credit score need to be to qualify for a car loan for bad credit?

A: Fortunately, your credit score will not keep you from getting a loan as long as you have a good job history, are over 18 years old and make over $1500 per month. Your credit score will determine your interest rate however, so if your score is very low you may be looking at a pretty high rate. Decide in advance how much you are willing to pay per month so you can stick to your guns at the financing table.

Q: Can I get turned down for car loans for people with bad credit?

A: The primary things that keep people from getting approved are a lack of a current job, under the age of 18 or a recent repossession that was not part of a bankruptcy. Some of these things you can get around with the help of a co-signer. A co-signer will help you qualify by using their credit. Make sure you can make the payments if you are getting the help of a co-signer because if you make a mistake, it will negatively impact their credit as well.

Q: Where is a good place to get a bad credit car loan?

A: Start with your bank and see what kinds of programs they offer. Often you can pre-qualify for a loan which takes some of the pressure off when you begin to negotiate for a good price at the dealership. If you are prequalified you can also shop from local classifieds and for-sale-by-owner listings where you may get a better deal. You can also look for pre-qualification loans at a Credit Union. If those two options don’t work out, apply for financing at a reputable car dealership.

Q: Am I limited in the kind of car I choose?

A: Yes. Most banks will not grant a car loan on a car over 7 years old.

Q: Can I refinance an existing car loan with bad credit?

A: Yes – there are refinance car loan bad credit programs out there – call the financing company who you currently pay your payments to and ask them if they have a refinancing option available. You can also check banks and credit unions about refinancing your loan. Often you can extend the term of your loan and/or lower the interest rate which can put much needed dollars back into your pocket each month.

Summary

As you can see, if you have a good job history, make at least $1500 per month and are over 18, you will likely qualify for car loans with bad credit. Be sure to stick with a reputable lender and choose a car that is no older than 7 years. With the information in this article you should be prepared to start your search for the right bad credit car loan for you.

photo credit: JLaw45