How Can I Get Car Financing With a Bad Credit Score?

You’re looking for your next new luxury vehicle or you want to get into this segment with an initial purchase on a world-class car or SUV for your Providence garage. But then you look at your credit history and wonder how to get a car loan with bad credit. The finance team at Mercedes-Benz of Warwick can help you with less-than-ideal credit. We can’t make any promises, but our team will look into your precise situation and see what we can do.

Keep reading our guide on how to get a car with bad credit. You might realize that getting a new or used vehicle from our dealership near East Greenwich is easier than you think.

How to Get a Car Loan With Bad Credit 

Knowing how to get a car with bad credit is the first step before you talk to our finance team. It starts when you apply for financing to get pre-approved. The results should tell you what kind of loan terms you could get. Then, determine what that looks like for a monthly payment.

If there are things you don’t like when you see your pre-approval results, reach out to us. Our finance experts will work with you to figure out a payment plan that works for your situation as you learn how to get a car with bad credit.

Steps to Take to Get a Bad Credit Car Loan

If you’re thinking about getting a bad credit car loan, assess your situation first. Your credit might not be as bad as you think when looking for financing for a luxury vehicle at Mercedes-Benz of Warwick.

Determine How Much You Can Afford to Pay 

You can afford a monthly payment, which is great. But you need to see beyond that. Think about registration fees, car insurance, maintenance costs, and fuel costs. How do your potential car payments and expenses fit in with the rest of your expenses? Can you afford the vehicle plus your home, utilities, food, and other expenses? 

Make a Bigger Down Payment, If Possible

A larger down payment will help lenders see you mean business. They’re more likely to lend you a smaller amount versus a larger amount. Even better, you’ll have a smaller loan balance to pay off and pay less interest throughout the loan. Making a larger down payment with the help of a trade-in certainly helps to keep your monthly payments lower and more manageable.

Clean Up Your Credit Report Before Applying for a Bad Credit Car Loan 

You get one free credit report a year from the big three credit bureaus. If you catch any errors in your credit history report, dispute them. Errors could pull down your credit score. Begin to pay any outstanding debts as soon as possible. Paying small amounts here and there can improve your credit score. A better credit score can lower your interest rate, which, in turn, lowers your monthly car payment.

What Vehicle Should You Buy?

Make sure you can afford your monthly payments, even if it’s not your dream car. You’ll need a vehicle you can afford to take care of for several years to get the most out of your investment. Look over our inventory of used or certified pre-owned vehicles for lower-priced alternatives to purchasing a new vehicle near Cranston.

Don’t Settle With Just One Lender

Don’t assume the first lender to approve your bad credit car loan will be the only one. Apply with other lenders, compare the rates, and see which one gives you the best terms for your budget. 

How to Get a Car Loan With Bad Credit: Improve Your Credit Score

Taking out a bad credit car loan and consistently making payments on time every month will improve your credit profile and credit score. In the future, you can get better credit terms with other loans as you need them. So, getting a car loan with bad credit can lead to better financing at some point!

Finance a Car with Bad Credit in Warwick

Looking for a bad credit car loan at Mercedes-Benz of Warwick? Value your trade to see how we can help you achieve your dreams of owning a quality luxury vehicle. It’s a great start towards owning a first-class vehicle!