What if You Don’t Have A Co-Signer for Your Car Loan

In today’s world, having a good credit rating can mean the difference between getting some jobs, or the apartment of your dreams. It can mean the difference in a financing agreement with an auto dealership. What do you do if you are stuck in the terrible situation of having bad credit and wanting to finance a vehicle?

The first thing to remember is this; no matter what, you can still finance a car, but it may not be on your terms. With bad credit, your trustworthiness to the lender is going to be called into question quite heavily.  Here are a few ways that you can get yourself financed while being saddled with bad credit.


What many would assume to be the simplest way to get a car financed is to find somebody you know, whether they are a friend or relative, and get them to cosign on a loan.  A cosigner on a loan with a much higher credit rating than yours will ease the nervousness that a bank has in lending you the money to finance a vehicle. In this situation, the bank sees this as the cosigner vouching for your ability to pay back the loan.  Reason being, is that, in case for some reason you do not pay, the co-signer can be held responsible for making the payments. Doing this to finance a vehicle will make it much easier to get a car loan at any dealership.

What if you don’t find a co-signer

Some may be reading this because finding a co-signer is not an option for them.  Fear not, because you can still get financed. It will just be a bumpier ride. There are thousands of smaller dealerships known as “buy here, pay here” lots that will gladly finance you.  The main difference between this version of vehicle financing as opposed to cosigning is that they are going entirely on your credit rating alone.

Best Option To Rebuild Your Credit

Car dealerships that specialize in dealing with customers in bad credit ratings usually do not offer the best loan terms.  If you are looking to rebuild your credit and have to do it on your own, this option is a good place to start. Your initial payments may be high, but after several months of making constant payments on time you can always attempt to refinance the original loan at your local bank.  The payments may still be higher than a loan agreement made with a person with excellent credit, but chances are they will decrease with time. You have to remember, rebuilding your credit takes time. Agree to terms you don’t like now, once your credit returns to its former glory, you will be able to get a better loan deal.

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