Preparing for a Bad Credit Car Loan
Once you've completed the online loan request form, there are a few steps you can take to put yourself in the best position possible when it comes time to visit the dealership and get your car.
- Know Your Credit Score: Having a solid understanding of exactly where you stand in the eyes of a lender will help establish expectations and provide insights into your financial situation.
- Understand Your Budget: A key factor in determining eligibility for a new loan is your current debt-to-income ratio. If you already spend as much as you earn on things like credit cards or other loans, it will be difficult to get you approved.
- Gather Your Paperwork: To finalize a bad credit car loan, the dealer will require some paperwork. This usually includes a pay stub or other proof of income, proof of residency such as a current utility bill, and a valid driver's license.
Good Credit vs. Bad Credit
Good Credit
Bad Credit
Lenders offer lower interest rates, which decrease monthly payment and the total cost of the loan over time. Rates may be lower than 5%.
Interest rate will be higher,
depending on credit score and other factors. Rates may be higher than 20%.
Loan term can range between 24 and 84 months, with 60 months being average for borrowers with higher credit scores.
Loan Term depends on monthly payment and affordability, with 72 months being average for lower-credit borrowers.
Financing may not require a down payment or any other additional provisions.
Additional approval requirements may exist, such as larger down payment or co-signer.
FAQs 
Can I get pre-approved for a bad credit car loan online?
Completing our Loan Request Form will begin the pre-approval process with a local dealership.
Can I pay off a bad credit car loan early without penalties?
Most auto loans can be paid off early without incurring a penalty.
Can I get a bad credit car loan for a used car, or is it limited to new vehicles?
Bad credit auto financing is available for a large variety of quality pre-owned vehicles.
How is situational bad credit different from habitual bad credit?
Situational bad credit is infrequent and unpredictable, such as financial issues caused by an injury or divorce. Habitual bad credit relates to frequent and repeated delinquencies, repossession, foreclosure, etc.
