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

Signing Finance Documents for Car

Wondering how to get a new car with bad credit in Austin? It’s a lot easier than you might think! At Toyota of Cedar Park, our team of auto finance experts is ready to work with you on a custom financing solution that fits your needs. Learn how to get a car loan with bad credit with the guide below, and see how much you can save with our current new vehicle specials.

Here’s How to Get a Car Loan with Bad Credit

If you’re thinking about how to get a car loan with bad credit, there are a few things to be aware of before you apply. You want to be sure that buying a car is the right move for you:

  • Determine a realistic budget. You need to consider more than just the amount you can afford to borrow. Factor in additional expenses like car insurance, annual registration fees, fuel, and maintenance.
  • Make the biggest down payment you can afford. If your credit isn’t great, a larger down payment will help convince lenders that you’re serious and able to pay on time each month. In addition, a larger down payment means a smaller principal amount, and less interest down the line.
  • Clean up your credit report before you apply for a loan. Pay off smaller outstanding debts and follow up if you think there may be an error on your report. Errors may be dragging your score down, so it’s always worth your time to dispute them! Making a dent in larger debts can also reflect favorably in your score.
  • Choose a car you can afford. Sure, you might want to head home to Leander in your dream car, but be honest with yourself about what you can afford without straining your budget. You also want to be sure that you can still make your loan payments if you’re hit with an unexpected expense.
  • Apply to multiple lenders. Shop around for the best offer, and don’t assume that the first approval you receive will be the only one! Even with bad credit, you’re likely to receive multiple offers. To avoid possible credit damage, apply to a handful of lenders within the same two-week span.

To Improve Your Credit Score, Take Out an Auto Loan

Few people are aware of the fact that taking out an auto loan is actually a great way to build credit. As long as you make your payments on time, your good financial habits will be reported to the major credit bureaus by your lender — and can even boost your credit!

Auto Finance Experts Tell You How to Get a Car With Bad Credit in Cedar Park 

Why buy with Toyota of Cedar Park? We offer fair and flexible financing in the Georgetown area! Whether you want to appraise your trade-in or pre-qualify for financing from the comfort of home, our convenient online tools make car-buying easier than ever before.

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