How to Get an Auto Loan with Less-than-Great Credit
Updated Jan 21, 2026
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Credit card stress is hitting a lot of people right now. Overspending, missed payments, and the scramble to keep up can weigh on a household fast. It isn’t always about being careless, either. Life gets expensive, and bills slip through the cracks—it happens.
If your credit score is below 580, your credit falls into the lowest range. It’s categorized as “bad”, which employers, landlords, and banks often see as an indication that you’ve been financially irresponsible. Bad credit can be a barrier to many things, including renting property and seeking a loan.
But if you’re in need of an auto loan, what options do you have when your credit is low? Though this experience can undeniably lead to major challenges, we have a few tricks to help you on the road to getting an auto loan.
Keep reading and try these steps to get you moving in the right direction.
Lean on your loved ones
If you’ve been shopping around for a loan with no luck, it may be time to seek an outside resolution. Banks view your credit score as a reflection of your reliability, and it’s very possible they’ll be hesitant to float you the large chunk of cash you’re asking for. One method is to find a co-signer: someone who agrees to provide payment if you fail to.
A co-signer should be someone with a steady income and the means to fulfill their promise if necessary. Co-signers can be a parent, sibling, or close friend, and their credit score should be high enough to justify the bank’s trust in them.
Ideally, your co-signer will never be put in the position to pay off your debt, but having someone to fall back on in a financial emergency will increase your likelihood of getting an auto loan.
Save and create a budget
If you want to demonstrate financial capability to your bank, start by saving up for a down payment now.
Offering a down payment up front usually results in lower monthly payments and demonstrates your commitment to being responsible. For those overwhelmed at the prospect of hoarding a lump sum of money, don’t over-stress about the number you have saved.
Even an amount as small as $1,000 can help you move forward and begin repairing your financial future.
Shop around
Your current bank or credit union
Don’t let one rejection stop you on your hunt to be approved for a loan!
Just because one location says no, this doesn't mean that your “yes” isn’t right around the corner. If you have a pre-existing relationship with a bank or credit union, we recommend starting there. Because you’re a valued customer, they’ll have a better understanding of your credit history and likely be more empathetic to your plight.
Online options
The internet is integrated into almost every facet of our lives.
Online lenders can save you time, allowing you to apply for prequalification without commuting to a bank or credit union.
These online services can also offer insight into what kind of loan you are qualified to receive. Bankrate and Life Loans are two online lending options available to those with poor credit scores.
Car dealerships
Car dealerships do more than just sell cars. Because they often have connections in the loan world, they can turn to their networks and match you with a lender who’ll be willing to give you a loan. Remember: car dealerships want you to purchase a car.
They might even be more excited by the idea than you are! This means they’re very motivated to get you that loan, so it never hurts to ask what they know and use that information to your advantage.
How can I raise my credit score?
If you’re looking for more than just a band-aid for your credit trouble, raising your credit score over time is certainly possible. This can be accomplished by paying off your credit card debts in a timely manner and limiting the number of credit cards opened in your name.
Improving your credit score can be a slow process, but it will be worth it in the long run for your financial success.
Shop Transwest
If financing is a concern, Transwest is here to help. Once you’re ready to move forward, visit one of our locations so we can help you find your dream car.
