Can I Finance a Car Loan with Bad Credit History?

If you’re interested in applying for new car financing, you’re probably thinking about your credit. If your credit isn’t the best, you’re probably wondering if it’s possible to get bad credit car loans in your area.

At Helfman Dodge Chrysler Jeep® RAM, we have plenty of experience working with drivers of all backgrounds and means to help them finance that new vehicle they’ve had their eye on. Here’s what you need to know about financing with bad credit.

You’re Unlikely to Qualify for National Incentives

If you see a deal advertised, like a special low APR for car loans, just know that you are unlikely to qualify for it if you don’t have the best credit score. Those offers are usually reserved for drivers with really good credit and a history of handling financial obligations responsibly.

Don’t worry though, there are still ways to get the financing that you need! You’re just likely to pay a higher interest rate.

You Could Get a Co-Signer

If you can’t get a loan for that new Dodge car on your own, you may be able to get the financing you need with the help of a co-signer. A co-signer is someone else who will sign onto your loan with you.

They have a better credit score or a more robust credit history than you do. This gives the lender some additional confidence because your co-signer is essentially signing up to be responsible for your loan if you default.

You Can Take Out a Smaller Loan

Taking out a smaller loan can also make it easier to get approved for financing. You’ll also end up paying less in interest if you opt for a smaller loan.

Many drivers put down 20 percent when buying a car, financing the rest. You can make a bigger down payment and apply for a smaller loan.

If you want to learn more about auto loans and how you can drive away in the new SUV, car, or truck of your dreams, visit our dealership in Houston, TX. We’ll help you find a financing agreement that works for your budget!