The short answer is yes, but you need to understand some of the problems you may encounter if you try to purchase a car with bad credit. First lets talk about what bad credit is. In this instance, credit means the ability to get a loan to purchase something. When a person has bad credit that means he or she has not shown an ability or willingness to pay back money which has been borrowed.
Maybe the person has defaulted on a credit agreement such as having a car repossessed, missing payments on a credit card, or having a foreclosed piece of property. All of these would give you bad credit because they show a problem with making the payments you have agreed to make. If a bank or lending institution sees you are not likely to pay for a loan then they will be less likely to loan you money for anything.
So if a person has bad credit does that mean they will not be able to finance a new or used car? No it does not. In fact, there are companies which specialize in making car loans to people with bad credit. If you go this route you need to understand that the loan cost will be very high. Instead of a car loan for 8 or 9% you may pay upwards of 20% interest. This will drastically increase the amount of money the car will cost you all together. If this is your only option then it is what you may need to do if you absolutely must have transportation.
If you don’t need to buy a car right now, you would be better off working to improve your credit score over the next six months and then getting an auto loan. Bring all your accounts up to date and make all payments on time and your credit history will look much better. You may also take out a small loan from a bank and pay it off in this time period. This will also help to improve your rating.
You can buy a car with bad credit but it is much easier if you have a good credit rating.
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