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How to Get a Car Loan with Bad Credit

Mike Roberts
Written by Mike Roberts

In our modern society, being “without wheels” is more than just an inconvenience… it can be a major problem.

Without a car, shopping is difficult and getting to work may be impossible.  That’s why “Food, Shelter, and Transportation” are often named as the three necessities of modern life.

Millions of Americans have discovered that buying a car while struggling with debt and credit issues can be a major challenge… but it’s not hopeless.  There are 4 common sources for car loans if you have credit problems, but first let’s look at your situation from the lender’s perspective:

What Lenders Consider

Most lenders consider two major factors when considering a car loan:

  • The “strength” of the borrower, and
  • The “loan exposure”

Tweet This: Your ability and willingness to pay back a loan determines your strength as a borrower. #financefitness

Your strength as a borrower is determined by two things:

First, your ability to pay back a loan is critical.  Simply put, the lender will determine your monthly income after taxes and withholdings.  The lender will subtract all your monthly expenses.  If there is enough money left over to cover a car payment, then GREAT!  If not, good credit or bad, you will find it difficult to get a loan.

Second, your willingness to pay back the loan is also important.  Lenders determine this by looking at your credit history and credit score.  If this information shows that you have had difficulty paying others, then the lender will be more cautious about making the loan.

About the author

Mike Roberts

Mike Roberts

Mike has seen how important understanding credit has been in improving his own life. As a result, Mike dedicated himself to teaching others how to improve their lives by raising their credit score and taking control of their personal finances. Mike is an experienced entrepreneur with a passion for knowledge. He’s also a bit of a self-improvement enthusiast, and enjoys sharing what he learns with others.


  • All of this is old information. Nothing new. We all know this umless your 17 years old. LTV, down payment, credit scores etc.
    Tell us something we dont know for once. Same information over and over and over.

  • I do like that your article suggests some places where the readers might be able to get a loan. After all, it can be pretty difficult to secure a proper loan to use for buying a car, especially if you have bad credit. However, many of the services that the article lists are usually willing to work with anyone to ensure that they get the car loan that they need.

  • Interesting article. I like the fact that you provided a list of institutions that may be able to provide you a loan even if you have bad credit such as car dealers and finance companies. I don’t think anyone wants to have a bad credit standing but if ever I would be in that predicament, I would certainly take heed of your advice.

  • how do you get out from a high rate auto loan,that you still have two years to make payments .and the auto is falling credit score is about 687,with your help,but i dont think my auto will make another two years.Idont want two auto payments,and not be able to drive one.

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