How Can I Buy a Car with Bad Credit or No Credit?

April 22nd, 2022 by

Two people in convertible with salesperson

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At many pre-owned car dealerships, credit plays a big role in the approval process for a vehicle. That makes many car buyers ask, how can I buy a car with bad credit or no credit at all? 

It may seem like a difficult process, but it’s seldom impossible when you follow these steps as you begin your purchase journey:

One option for credit-challenged car buyers is searching for your next vehicle through a buy here pay here dealership. Oftentimes, these establishments offer fast approvals among a host of incentives for their customers, all while helping you work on your credit.

What to Know Before You Buy

When you’re working without credit or with a poor credit rating, it helps to be prepared. That means:

  • Working on Your Credit Score: Make sure you pay off what you can, dispute any credit report errors and add any positive information to your credit report. Paying everything on time such as utility bills, other loans such as mortgages and student loans definitely help. Don’t take on any other major credit obligations including new credit cards before trying to buy a pre-owned vehicle without credit.
  • Saving: If possible, save up for a decent down payment. Even a few dollars each day will help. A down payment will act as collateral and reduces your monthly payments, as well as help buy here pay here pre-owned vehicle dealerships view you as less of a credit risk.

When You Buy a Car with Bad Credit

When it comes to the buying process, there are many things you can do as the buyer to make the purchase journey smoother as you look for your next car, truck, SUV or van . You can help yourself out by:

  • Knowing Your Budget: How much of your income is spent on essential bills and expenses each month? Do you currently take the bus, public transportation or pay for rideshare services? All of this affects your budget for a pre-owned vehicle. If you aren’t sure where to start in setting your budget, check out our helpful guide here.
  • Get Pre-Approved: Getting pre-approved for a vehicle before you start test driving vehicles can save plenty of time once you get into the dealership. Once you set your budget and know where to start, this next step is getting pre-approved.
  • Avoid Extras: Shopping for a car with bad credit generally means you may not be approved for the vehicle you prefer. You may need to sacrifice some of the comforts you prefer in a pre-owned vehicle. At CarHop, our goal is to get people driving in a vehicle that fits their needs and budgets, which may not include all the frills some car buyers would like.
Budgeting with bills and credit cards to get a car

Car Dealerships that work with Bad Credit

If you get turned down for a car loan due to bad credit that doesn’t mean you’re completely out of luck. In such cases, a Buy Here Pay Here (BHPH) arrangement can help. These low down payment car dealerships work with bad credit and low down payments to provide financing instead of arranging it through a third-party, so:

  • Getting approved is often faster than other traditional used car dealerships, regardless of credit status or history.
  • You have a chance to work on your credit.
  • Incentives are provided to encourage an ongoing relationship with the dealership and your account manager.
Denied Credit

When you purchase a pre-owned vehicle with CarHop, you’ll even receive:

CarHop Money Back Guarantee

CarHop is Built Around Helping Drivers With Poor Credit or No Credit

Looking for more advice about finding suitable cars for sale with bad credit? Want to find out more about BHPH dealerships and how they help people buy vehicles with low or even no down payments? That’s what we’re here for: simply contact your nearest CarHop today to learn more or start the pre-approval process online with us.

Disclaimers: * See dealer for details. ** See dealer for copy of limited warranty. *** AutoCheck reports are provided for informational purposes only.
Posted in Car Buying, Credit