The surprising answer is YES! If you are in need of a car but your bad credit history is leaving you stranded, there is good news for you. At My Ride, our goal is to provide financing to everyone, regardless of credit history. In addition to working with 16 different lenders, we also can provide our own financing outside of the banks, allowing individuals with poor credit scores to obtain a loan for a reliable new or used car.
Even better, in addition to the freedom of owning your own vehicle, a car loan can help repair a bad score!
How Can a Car Loan Raise My Credit Score?
When you get a car loan, you are being granted the right to use and register a vehicle in your name in exchange for monthly payments to repay the car loan.
Since 35% of your credit score is dependent on your payment history, as long as you are making your car loan (and other debt) payments time, your credit score will improve.
Strategies to Get Approved for a Car Loan With Bad Credit
Boost your chances at getting a car loan with bad credit by being over the age of majority in your area, and have a:
- Valid driver’s license
- Steady job where you earn $1800 per month
In addition, it is worth speaking to a credit counselor in your area that can provide helpful and free advice on consolidating your existing debts and establishing a budget so that you can easily calculate what vehicle price you can afford. As a general rule of thumb, your monthly car loan payment should be no more than 15% of your total monthly income.
Where Can I Get a Car Loan with Bad Credit?
My Ride is a great place to start. We work with dozens of dealerships and 16 different lenders. In addition, we are also able to provide car loans to individuals with bad credit with our own money.