How to Get a Vehicle Loan With Bad Credit

A bad credit score can feel like a nail in the coffin when it comes to securing a vehicle loan. Even if you do find one, most options have sky-high interest rates. Fortunately, there are solutions to get you financed and out on the road. In this article, we’ll break down how you can secure a decent vehicle loan even if your credit is less than impressive.

Take a Look at Your Needs

Consider for a moment, do you truly require a car right now? Could public transportation do the job? If you have the option of holding out on this purchase, most financial advisors would suggest you do so. Instead, focus on saving money and using methods to build your credit score back up. You’ll have a much easier time purchasing a vehicle if you spend several months working hard to build up your score. However, if you have to buy a car right now, understand you may have a high-interest rate when it comes to a loan.

Consider Your Credit Report

If you know you have a low score, be advised that your score drops further every time it is checked. When shopping around for the best interest rate, keep in mind that time is of the essence. You’ll want to complete your search and accept a loan within a two-week window before the credit checks lower your overall number.

Consider the Interest

A 5-year loan might seem attractive because of the lower interest rate. However, in the long run, you’ll be paying much more than if you had accepted the 3-year loan with a higher interest rate. Experts suggest you accept a 3-year loan and focus on making timely payments to increase your overall score.

Consider a Logbook Loan

Logbook loans are secured over your vehicle. Meaning if you fail to make payments, they will collect your vehicle as collateral. Because the loan is secured against an asset, most companies don’t do credit checks and are willing to work with your low score. Expect a minimum interest rate of 99% but also be aware it could be as high as 450%. On the positive side, you can borrow up to 70% of the price of your vehicle and in most cases, you will receive the funds within the same day of approval. When considering a logbook loan, it’s important to make sure the lender is FCA regulated to ensure you are not being ripped off.

Look Around

Companies like offer vehicle loan comparisons. It’s their job to search the internet to provide a list of the best loans available for your situation. Utilizing a service like this saves you time and money. They make things easy by doing all of the research for you and you’ll have all of the necessary information when it comes time to make a decision.


No need to let a bad credit score stop you from purchasing a car. Make smart, well-informed decisions by utilizing vehicle loan comparison services like and remember that you have the power to change your credit score. Make timely payments and work hard to pay off your vehicle loan. Your score will be up before you know it!