Consumers with a bad credit history who apply for financing at traditional lending institutions are often likely to get their loan application rejected. Thankfully, such a rejection does not have to mean a new car purchase is impossible for bad credit consumers.
Checking one’s credit report is a crucial first step to take after a rejection. In case the report has errors, they can often be corrected, and a consumer can appear more credit-worthy to banks and other lending institutions.
Even if there are no errors on the credit report, a car purchase doesn’t have to be out of reach. According to Edmunds.com, the credit market has changed drastically in recent times, and bad credit history no longer prevents consumers from obtaining auto loans. Many institutions currently provide bad credit auto loans, and consumers can shop around between such lending institutions to obtain a rate they can afford.
Getting a loan before coming to the dealership may also be advisable, according to Edmunds. Auto dealers often take a cut out of car financing deals they make, which could potentially make the financing less advantageous for the consumer.