Can You Get a Car Loan with Bad Credit? Part II of III

This is part two of a three part series on whether or not it is possible to get a car loan if you have bad credit. Last time we discussed bad credit, bad credit car loans, how much you can afford in a car, monthly budgeting, and thinking ahead to repairs and other car related expenses.

You should be at your current job for at least a year. This tells the lender that you are looking to get your act together, you are showing that you are responsible enough to hold a job, which means you are responsible enough to pay your car loan. Many lenders will overlook a lot of bad credit just because you have held down a job.

The same goes for your address – if you move around a lot, they will get concerned that they might not be able to find you if you default on your car loan. Keeping a pattern of responsibility and dependability plays well to their fears – so try to keep the same address for at least a year to help with the auto loan.

You will also want to look at the amount that you are looking to borrow as opposed to the amount that the car actually is. Having a large down payment to put down on the car will help show that you are serious about keeping the car and thus keeping up your car loan payments. No one is going to put down a large down payment on a car that they are just planning on seeing repossessed.

Next time we will discuss credit unions and banks and your history with them – whether or not they might be a possibility; co-signers; and how what kind of finance manager you have might change everything for you.



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