Help! I’m Broke and have Bad Credit but Desperately Need a New Car

You might feel like the only one in the world who’s worrying about how your bad credit score will affect the chances of getting a new car. Rest assured – you’re not. The global recession has hit millions of people in almost every country all over the world. Perhaps you’ve lost your job, had children, or missed payments on a loan due to difficult circumstances. Whatever the situation, bad credit is certainly a common problem in this day and age. Luckily, there are wide selections of car finance companies who are willing to overlook your poor credit rating and give you a chance. Sure, there are many car advertisements on TV with the smallprint ‘Subject to credit approval’, but with a little bit of research, you can find the companies who are able to give you a satisfying deal.

Just because you’re stuck with a poor credit rating, this doesn’t mean that you can’t get the car of your dreams. Read below to find out some useful tips on how to buy a new car with bad credit.

Get Your Own Credit Score

So, you already know you have bad credit. It’s stated in your ‘FICO’ score, which rates an individual’s credit in numbers. Anything under 640 is considered to be ‘subprime’, and often, scores in the 500s or below are refused by many loan companies. However, there are companies out there that will gather all of your financial data from the past and any current credit accounts, plus any missed or late payments. Everyone is entitled to a free credit report each year, so it’s certainly a wise idea to take advantage of the opportunity. Often, car finance companies will request both your FICO score and a detailed report, so it’s important to have both of these in order. It will allow financial institutions to look at where & how you went wrong before, making them more likely to give you a second chance.

Show This Off To Car Dealerships

It’s no use getting your own credit score if you can’t show it off. Car dealerships will be much more likely to offer you a fair loan if you bring your detailed credit report along with your FICO score. As previously stated, a detailed report shows any prospective lenders where you went wrong before and, most of the time, how it was out of your control. This ensures a better understanding of your financial history, and potentially better deals.


Obvious but true. Of course, you might be in desperate need of a new car – but wouldn’t you prefer to have the money first? Budget. Track and document all of your expenses and income, and determine which parts you can cut back on. For example, did you really have to spend that much on a new T-shirt? Was it absolutely necessary to go to the cinema that much in one month? Often people are wasting their precious money and don’t even realize it. If a new car is your number one priority, you should be willing to cut down any pointless spending in order to put some money away for the car. Not only this, but try and pay your bills on time and in full each month. That way, you’ll be saving and improving your credit score simultaneously.

Look Out For Lenders Who Are ‘Subprime’ Loan Specialists

In order to find the perfect car finance company for you and your poor credit rating, it’s essential to shop around. If you’re not having much luck with car dealerships, keep your eye out for lenders who specialize in ‘subprime’ loans. These are companies who provide loans for those with bad credit. They are mostly found online, so start searching!

Clearly, it’s not impossible to obtain a good deal with a poor credit score. The key is to shop around and find out what’s on the market, save all you can, and take advantage of any free, personalized credit reports on offer. Follow the tips & tricks above and you’ll be driving your new car around in no time.