When shopping for auto financing, it’s important to understand the general requirements for getting approved, which vary depending on the auto lender or finance company.
Since one of the main requirements for getting approved by traditional finance companies is a positive credit history, it’s important that you check your credit report before beginning the car-buying process, so you know where you stand.
If you have bad credit or no credit, here are three ways that can help you increase your chances of getting approved for auto financing:
- Get a co-signer
If your credit history or income is insufficient to qualify you for a car loan or auto financing, bringing in a qualified co-signer (someone with good credit and/or steady income) may help strengthen your application. Typically, people who have little to no credit history rely on the credit of their co-signer to qualify for the car loan or auto financing.
Because the co-signer’s name is also on the loan or financing agreement, your payment activity can directly impact his or her credit history. Hence why it’s important for you to make on-time car payments – not just to improve your credit, but to sustain theirs.
- Having a down payment
Having money saved for a down payment on a vehicle is another way to increase your chances of getting approved for financing because it reduces the auto lender or finance company’s amount of risk to finance your vehicle.
- Work with a car dealer enrolled in the Credit Acceptance auto financing program
More than 12,000 car dealerships enrolled in the Credit Acceptance program can approve everyone for auto financing, regardless of their credit history. To get started, you can fill out the Start Your Credit Approval form on our website and get connected with a local dealership enrolled in our program that can get you approved for financing!
If you have a less than perfect credit history and are looking for auto financing to purchase a vehicle, a car dealership enrolled in the Credit Acceptance program can help. Simply fill out the form on our website and we’ll connect you with a car dealership in your area that can help you get started!
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