Posted on: May. 02, 2014 in Credit, Car Loans

Are you like one of the many individuals out there who are suffering with poor credit? If so, then you might be wondering how you can qualify for financing to afford some of the basic necessities of life like a house or a car. In particular, shopping for cars can be especially discouraging. After all, you can rent a car for life. You need financial assistance. Fortunately, these tips will help those with bad credit understand how they can find the necessary help to get the vehicle they are in need of.


Know Your Credit Score

First, it is important to know what your credit score is before you shop for cars. Too often people simply assume they have bad credit. However, they never make an effort to determine what their actual credit is. Fortunately, you can access your credit reports online. This will help you to understand where you stand when you are purchasing a car, and it will let you know whom you should seek financing from when the time comes.

Visit The Right Lender

Next, it is especially important to seek financial assistance from the right lender. If you have good credit, of course it makes sense to get a loan from financing department at the dealership. However, if your credit is low, then you might want to try other options. There are certain lenders that assist individuals with bad credit. Also, your own bank or credit union might be more willing to assist you since you have established a relationship with them. In addition, many people turn to their company for financing as well. If your credit is particularly low, you might need to shop around and try more than one option to find the right lender who is willing to work with you.

Establish A Positive Credit History

If you do not need a car today, you can always work to build your credit history. Make an effort to pay everything on time for the next six months. Also, try to pay off any balances you have on credit cards. This type of activity shows that you are making good decisions with the credit you have been given. When you apply for financing in the future for you auto loan, the lender might be more likely to approve you because of your good habits in the recent future.

Have Someone Cosign

Furthermore, if your credit is poor, you can always have someone cosign to boost your credit and help improve your chances of securing the loan. Lenders like a cosigner because it minimizes the risk that the loan will be defaulted on. However, keep in mind that your credit history is less likely to improve quickly with a cosigner. Therefore, you might be better served to apply for a bad credit auto loan that will approve the loan in your name alone. If you are the sole account holder, your credit record stands to benefit more.

Although it is more challenging to secure an auto loan with bad credit, it is possible. Try some of these suggestions so that you are not stuck walking to all of the places you need to be.

If you need auto financing but your credit is keeping you from getting approved, CreditYes can help! We can match you with a dealership in your area that will be with you every step of the way. Our service is fast and free. Fill out our secure online application and get behind the wheel of your next car today!