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Step 1
Know your credit score. Everyone is entitled to one free credit report online. Knowing your score before applying for a car loan is important. If your credit rating is too low, nothing can help you and you will just end up wasting everyone's time. If your credit score is below a 600, I would advise taking some time to boost your credit rating before applying for any auto loans with bad credit.
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Step 2
Head to the largest car dealership you can find at the end of the month. Big car dealerships have higher quotas to fill. They also hit larger manufacturer bonuses which makes them more resourceful when it comes to getting cars out towards the end of the month. They try harder to push deals through finance no matter how bad your credit may be. Larger car dealerships also tend to have special finance departments. More skilled and experienced finance officers are better at getting people qualified for auto loans with bad credit. Some dealerships will even refinance auto loans with bad credit.
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Step 3
Increase your down payment. One of the first things any dealership will ask you to do is put more money down. Lenders like to see more commitment on behalf of people with bad credit. This helps show them that your not planning on taking the car and then just stop making payments when you drive off the lot.
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Step 4
Have a cosigner sign for you. A friend or relative acting as a cosigner can over ride your credit and greatly increase your chances of getting approved for a car loan with bad credit. Preferable someone with a high credit rating. The stronger their credit rating, the better chance of approval you have.
