Can I Buy a Car with a Bad Credit Score?

Looking to secure a car loan in the Calgary area, but have a less-than-stellar credit rating? It can be a challenge to get financing with bad credit, but it isn’t impossible. Here at Capital Chevrolet Buick GMC, our goal is to get you behind the wheel of the new Chevy, Buick, or GMC vehicle you need no matter what your credit score may be. Learn more about your options in this guide from the experts in our Finance Centre


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One Way to Buy a Car with Bad Credit: Get a Cosigner

One common way for car shoppers with a bad credit score to successfully purchase a car is to get a cosigner. A cosigner is ideally a person with a strong credit rating who signs on to take responsibility for paying back the loan should you default. The cosigner acts as a safety net, reassuring the lender that the loan will be paid. 

Getting someone to cosign your auto loan is an easy way for first-time buyers, those with bad credit, or those who have no credit at all to get a car loan, but it comes with some important responsibilities. You need to make sure that you can keep up to date with your payments to avoid having your cosigner be on the hook for your debt. That being said, if you manage your loan responsibly, having a qualified cosigner such as a good friend or family member is a good way to secure a car loan if you have a bad credit score.

Securing Car Financing with Bad Credit

Whether you choose to have a cosigner or not, there are some important steps you should take to improve your chances of being approved for a car loan, even if you have a poor credit score:

  1. Consider your budget and make a sensible choice about what kind of car you should buy.
  2. Determine how much you can afford to pay per month, and then use our online payment calculator to get an estimate on what your monthly payments will be.
  3. If at all possible, make a larger down payment. If you already own a car, trading it in can help cover the down payment. With our instant car appraisal tool, you can get the fair trade-in value of your vehicle in seconds. 
  4. Work on improving your credit score before applying for a loan.

The steps above will give you a good idea of how you may proceed and help you decide whether or not you are in the position to successfully apply for financing.

How to Improve Your Credit Score So You Qualify For An Auto Loan

Taking out a car loan in the %%target_city_2%-area is actually a good way to boost your credit score. As long as you keep up with your monthly payments, your credit rating will steadily improve. Other ways to raise your credit score include:

  • Review Your Credit Reports: It is important to routinely check your credit reports to ensure that the information there is correct.
  • Assess Your Debts: Knowing exactly how much you owe is crucial to making the right decision on whether you can afford to take on additional debt. 
  • Make a Payment Plan: Create a payment schedule. Eliminating small balances on credit cards is a good way to start boosting your credit score.
  • Open a Credit Card: Opening a credit card will help establish credit. For example, having one recurring monthly charge that you regularly pay with your card will work to build credit. Note that when applying for new cards or loans, many lenders do a hard inquiry of your credit. This can have a negative impact on your score for as long as a year.

Can I Refinance an Auto Loan Once My Credit Score Improves?

If you take out a car loan with bad credit, you will be faced with higher interest rates than someone who has good credit. However, keeping up with your payments will improve your credit score and make you eligible for a better interest rate on your loan. Once your credit rating improves, you will have the option to refinance your loan to get a lower rate. The finance specialists at Capital Chevrolet Buick GMC can help walk you through the process should you decide to refinance your loan.

Get Flexible Auto Financing Today at Capital Chevrolet Buick GMC

“Can I buy a car with bad credit?” You can at Capital Chevrolet Buick GMC. We’ve helped drivers from Calgary to Cochrane secure the financing they need to drive home in the new car, truck, or SUV that will best suit their lifestyle and their budget. In addition, we offer a variety of lease and finance specials to help ensure that you get the best deal possible. Please don’t hesitate to reach out to us if you have any questions.

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