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Bad Credit or No Credit: What Are My Car Buying Options?

Trying to buy a car with bad credit, or even no credit? It's not impossible! Good credit can take months or even years to build, but many people can't wait that long to get the car they need. The good news is that there are options for buying a car with bad or no credit that you can take advantage of today instead of waiting to build or repair your credit. Here's what you need to know:

Check Your Credit Score

First things first: it's a good idea to know where you stand in the credit score department. Though you likely already know if you have bad or no credit, but it's a good to know the exact number upfront. Brining a recent copy of your credit report, is never a bad idea. When a creditor makes an inquiry into your credit, it will show up on your credit report and potentially lower your score. But you can look up your own credit with no consequence. As a bonus, you might find an error on your credit report that caused a drop in your score. You can request to fix errors on your credit report, but it can be a time-consuming process.

Get Proof of Income

If credit isn't your strong suit, you're going to need other proof that you're capable of making your car payments. Get a copy of your recent pay stub and other sources of income you can use to lower your risk to the lender.

Get a Co-Signer

If your credit score and/or income isn’t strong enough to get a loan, you may want to see if someone else with good credit may be willing to co-sign the deal with you. Co-signors are a form of collateral that agree to make payments if you can't. It lowers the risk to the lender and may give you a better interest rate.

Plan to Make a Bigger Down Payment

People with less than stellar credit can still get financing, but they may face higher interest rates. This is to reduce the risk to the lender who takes a chance on someone with a bad credit score. This ultimately means you're going to pay more for your car versus someone with good credit. But you can offset this extra cost by making a larger down payment. The more you put down on a car, the less you end up paying in interest. Plus, your monthly payments will be lower.

Work with our Dealership's Financing Department

Our customers ask us all the time, "Can I buy a car with bad credit?" or "Can I buy a car with no credit?" And we're happy to say yes! Mike Kelly Toyota offers financing options for all drivers, with credit being only one consideration in the process. You can check the Toyota credit requirements for more details. If you're buying a car with no credit, let us help!

Getting the Car or Truck of your Dreams

If your ready to get the car or truck of your dreams, don’t let bad credit hold you back! Reach out today to discuss your options and let us help put you in the driver's seat of the vehicle of your dreams!