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How to Buy a Car with Bad Credit

Figuring out how to buy a car with bad credit may seem daunting, and it can be if it is not approached correctly. Just because you do not have a credit score in the 800s does not mean you cannot get financing from a lender.

Every company has different criteria, and most have lending programs that allow people with less than stellar credit to obtain a loan. Let’s check out a couple of ways you can get a car with bad credit.

Traditional Loans

Getting a traditional loan to purchase a car begins with finding a lender willing to work with you. If you have had a bank account for a long time in a specific establishment and have kept it in good standing, that will be the first place to start.

Otherwise, you can find online pages of lenders willing to work with your bad credit, but some are not what they are cracked up to be, so be careful when going this way. Read every offer from top to bottom and watch for any clauses or paragraphs that do not match your needs.

Having a friend or family member with you is one of the best tools you can use when approaching a traditional lender to buy a car. One with stellar credit who is willing to co-sign on a loan for you. This shows the lender that they have options if the payment is not made, which will improve your odds of getting a car loan by a drastic amount.

In-House Financing

One of the easiest ways to buy a car with bad credit is to go through a car lot with in-house financing options, such as the people at Easton Motors in Wisconsin. This works similarly to a traditional lender, but they are more willing to work with people with bad credit.

You may still need a co-signer, but at a buy here pay here car dealer, you can get into the car of your dreams without signing your life away. They will give you a good deal and will not look down on you for having bad credit. It happens to most people at one time or another in their lives, but people still need a car to get around.

In-house financing is also a great way to help build your credit to where it needs to be. As long as you make your payments on time every month and finish paying the car off throughout the contract, you will be given good marks on your report. Every time you get a good mark for paying on time and decreasing the amount of credit used, your score will increase.

Save Up Some Cash First

You can always go the old-school route and save money from every check until you have enough savings to buy the car you want outright. The main problem with this route is that you will have to wait months or years before purchasing a vehicle. If you are already walking everywhere, this may not be the route to take.

However, if you already have a decent car, it is an excellent way to allow yourself to upgrade without having to worry about your credit score. Of course, this means that by the time you can buy the car, it may have already been sold, or it has become an old model with less appeal.


Just because you do not have great credit does not mean you cannot get a car. There are numerous options available out there. You just have to look. Many suggest that you stay away from in-house financing establishments because of the increased interest rates.

But if you check into a bad credit loan anywhere else, including through banks and online lenders, you will find that they will charge you just as much, if not more. If you can find a good place that does in-house financing and has the car you want, it is the best option for people with bad credit.

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