How to Buy a Used Car With Bad Credit

Posted Tuesday, Aug 18, 2020

Here at Go2Motors, we believe that a car is a basic necessity that every adult shouldn’t go without. While public transportation is viable in certain parts of the world, America is just too big and open to get by without a good set of wheels. This is especially true here in the Detroit area. Unfortunately, getting a car is easier said than done.

Cars, even used ones, are prohibitively expensive for the average person. Most people don’t have a lot in savings, and many more live paycheck to paycheck. That means the only option is financing, which is all well and good — unless you have a bad credit score. Many dealerships and lenders will turn you away if your ranking isn’t good enough, and that makes things extremely difficult. Luckily, it’s not a lost cause. We help people with low-credit to buy cars all the time. If you want to buy a used car with a bad credit score, here’s what you need to do:

Work With the Right Dealerships and Lenders

At Go2Motors, we’ve helped countless buyers in the greater Detroit area to finance used cars, even if their credit score is lacking. Not only do we personally want to help you, but we also work with a network of lending institutions and banks that are more sympathetic to your situation. 

This is one of the most important aspects of getting a car when your credit score is low. Some people are willing to work with you, and others will flat-out refuse. It all comes down to who’s selling you the car, and who you’re turning to get the loan. The latter is obviously more important, because they’re the ones that you’ll be paying every month.

The thing is, bad credit isn’t always a sign of fiscal irresponsibility. There are many reasons why a credit score can dip, and we work with lending institutions that have a more open mind about this kind of thing. We can refer you to lenders and banks who, at the very least, will give you a much better chance than you’d find anywhere else.

Set Your Standards Appropriately

There are many low-credit buyers who struggle endlessly to get a car. It seems a sad sympathetic tale — until you see what kinds of cars they’re trying to buy. 

There’s an unfortunate reality that comes with bad credit — you can’t afford to be picky. While a credit score isn’t a tell-all indicator of how responsible somebody is, it makes sense that most lenders don’t want to shell out $80,000 to someone with a poor rating so that they can cruise around in a luxury vehicle. 

You’ll have to set your sights a little lower if you’re trying to climb out of bad credit. If you’re here on our website, you’re off to a good start. Not because our vehicles are subpar (quite the contrary), but because you’re better off buying used instead of new. We’re not saying you need to drive around a total piece of junk, but rather to be modest in your preferences. Everyone has a dream car — just know that you might have to wait a little while longer to get yours until you build up that credit score. 

Take Measures to Improve Your Credit Score

If you need a car, right now, today, there’s not a whole lot you can do about that poor credit score. But if you have, say, a month or two, there are actually some measures you can take to improve your score, even if only by a little. Here are some tips:

  • Make Sure Everything Is Accurate: First, make sure your credit score is actually accurate. If there’s something that doesn’t seem right, call it to get contested or removed. This alone can improve your score within the span of 30 days.
  • Practice Good Spending Habits: Your credit score is affected by your spending and the rate at which you pay back your debts. If you reduce your spending and put away more money than usual to pay off credit debts, it can improve your score even within one month.
  • Make Additional Payments If Possible: This applies for your normal debts, and also for the financing plan you’ll have with your car. Instead of just paying the minimum, consider paying more than what is required of you with extra payments. If you do this while you have a car, it’ll help you to have a better score if you decide to refinance later for a better interest rate. 

Bad Credit Used Car Loans in Detroit

Are you ready to start driving in your own vehicle? We want to help. If you’re struggling with bad credit (or no credit at all), contact us today.

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