Auto Loans on Bad Credit? Of Course!

credit Image courtesy of Philip Taylor PT

So many people think that auto loans are only for those with great financial means, but that is far from true.  While those with great financial means are certainly more than capable of getting an auto loan, financial stability is far from a requirement to get an auto loan.  All that you need to get yourself into a new set of wheels these days is patience, knowledge, and maybe a little bit of sacrifice.  Here’s how it all works…

Mastering Patience

The first thing that you will need to get yourself into a vehicle while trying to rebuild your credit is patience.  You will need patience to rebuild your credit a tiny bit in some cases, and we will cover the details of that under knowledge in greater detail just as the other thing you need to be patient about is going to be covered in knowledge to some degree: learning how to shop.  Repairing credit may be inexpensive, but it does take a little bit of time.  During that time you should be using the knowledge we are about to impart to you to be shopping, saving, and crunching numbers.

Think of the situation in this abstract way: given the same limits, a patient person can find a better deal because an impatient person can be taken advantage of.  Do not be that impatient person when looking for a vehicle or a loan.  Patience is like blood in the water and the person selling or lending can smell it and pounce.  Instead, be willing to look around.

Knowledge is a Weapon

When it comes to credit you need to know what is impacting your scores. You will find that the basics are quite easy to grasp: you need different kinds of credit, you may need to put up a hundred or more of your own dollars to get started, and you need to pay on time.  While the concept of paying on time seems simple, remember that if you use mail or bank transfers that it is the time that the money is received and not sent that is the most important factor.  If your credit is in the pits, consider putting $100 or so down on a secure credit card.  This means the bank will hold your $100 until you cancel the card (which you should never do) and will give you $100 in credit, with the down payment securing the bank’s interests.  Never have more than 30% of your credit card used at any time, and never less than 10%, and use and pay the card responsibly and your score will start to go up quickly.

Understanding where and how to shop for a vehicle and an auto loan is equally important, and both require patience as does rebuilding credit.  The good news is that all of the patience will pay off to great effect.  A few months can make a world of difference when it comes to building credit, but it also makes a difference when looking for vehicles online and shopping for an auto loan nationwide!  Remember to save the loan shopping until you have found a real steal on a vehicle!


Nothing good comes without an equal measure of sacrifice.  If you have no credit or only bad credit, you will see some serious gains by increasing your creditworthiness with a product like a secured credit card.  Remember to mix and match store credit when you can with revolving credit (i.e. credit cards) and pay responsibly.  It might seem counterintuitive but a single monthly purchase at stores and with a card will both build credit, even if it means saving less.  On the subject of saving, saving money will be instrumental in getting a vehicle loan on bad credit.  Being realistic, lenders want to protect themselves against higher risk customers by lending a lower percentage of the value of a vehicle.  You can shop for a real bargain, but you will still need to pay a greater amount out of pocket than someone with pristine credit.

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