How To Get A Car Loan With Bad Debt

Getting a car loan with bad debt can be challenging, but it's possible with some extra effort. While you may not get the best rates, you can still secure a loan and drive off in a good vehicle by following a few key steps.

Get a Co-Signer

The best way to get a car loan with bad debt is by securing a co-signer with good credit, which increases your chances of approval and better interest rates. If you know someone willing to co-sign, it can help you access loans that might otherwise be out of reach.

Check with the Dealer

Some dealers offer in-house financing and may be more lenient with requirements to sell a car, though interest rates can be higher. While you’ll pay more, discussing your credit score upfront ensures a fair appraisal of your options.

Go to a No-Check Lot

Some car lots don’t check credit scores, requiring a larger down payment and offering higher interest rates, but they can help improve your credit score. If you can, get a co-signer for better terms; otherwise, consider in-house financing or no-credit-check lots to secure a loan and rebuild your credit.