How To Get A Car Loan With Bad Debt
Getting a car loan seems easy, but that's only with a good credit score. If you've got a lot of bad debt, it can be much harder to secure a loan. It, however, possible to get a car loan with bad debt - it just takes a little more work. While you will almost certainly not end up with the same rates or type of loan you would have with better credit, it's possible for you to drive off the lot in a good vehicle with a little extra legwork. Below are a few of the ways you can get loan with bad debt.
Get a Co-Signer
Perhaps the best way to get a car loan with bad debt is to get a co-signer to help you with the loan. Bringing in a co-signer shows the loan originator that one of the parties to the loan has good credit, and thus it will make more lenders likely to give you the money you need. If you know someone who has good credit and doesn't mind signing for you, this is almost always the best way to go. You'll get a much better interest rate and often get access to loans that are typically out of your reach.
Check with the Dealer
Some dealers do financing in-house, and they're often a bit more lenient with their requirements if it will help them get rid of a car. While you probably won't get a great interest rate from the dealer, you will get the car. The rates offered by most dealers are a little on the high side, but they certainly aren't predatory by any stretch of the imagination. You'll pay more for your car, but you will be able to get the car you need. Make sure to talk to the dealer about your credit score up front so the dealer can give you a fair appraisal of your options.
Go to a No-Check Lot
There are even certain car lots that don't check credit scores at all. They tend to require a significant amount of money down on a vehicle and have higher-than-average interest rates, but they are great for those who really need to get a car loan quickly. Even better, most of these lots do report to the credit monitoring bureaus so working with them can actually help you to improve your credit score. Check with these lots if you have a fair amount of cash on hand to bring down the overall principal of the loan.
It's possible to get loan with bad debt. If you have any way to get a co-signer, consider that as your primary option - it will allow you to get a better interest rate and give you more options. If you can't, check on in-house financing at a standard dealer or go to a lot that offers no-credit loans. Making regular payments on any of these loans is a great way to get your credit back into better shape and to help you avoid figuring out how to get your next car loan.