8 Tips for Buying a Car With Bad Credit
Buying a car when you have bad credit or no credit history can feel intimidating, but it doesn’t have to be! At Mike’s Car Store, we understand that everyone’s situation is unique, and we’re here to help you navigate the car-buying process with confidence. If you’re under 30 or have a credit score below 700, these eight tips will make your car purchase a breeze.
1. Know Your Credit Score (But Skip Credit Karma)
Before you head to the dealership, it’s crucial to know your credit score. However, don’t rely on Credit Karma—it’s not as accurate as you might think. Credit Karma often provides an Advantage score, which lenders typically don’t use. Instead, lenders focus on your FICO score. A great resource to check your true FICO score is FreeCreditReport.com, an Experian company that gives you FICO Score 8. Remember, each credit bureau (Experian, TransUnion, Equifax) can report different scores, so it’s good to get a complete picture.
2. Be Open-Minded
It’s tempting to go for the coolest ride on the lot, but when your credit score isn’t perfect, it’s important to stay practical. Your next car should be reliable, fit your budget, and help you build credit. Think of this car as a stepping stone toward better financial stability. A reliable car that gets you from point A to point B is a great start!
3. Have Equity
Banks love to see that you’re invested in your purchase, so having a down payment or trade-in value can make a huge difference. Ideally, aim for 20-30% down, whether it’s cash or trade equity. Putting down a larger amount not only improves your chances of approval but can also lower your interest rate—win-win!
4. Bring Your Documents
Proof is power when it comes to buying a car with bad credit. Make sure you bring your pay stubs, W2s, 1099s, and bank statements. Having these ready can speed up the process and show lenders that you’re prepared and serious.
5. Don’t Shop Your Credit Around
Going from dealership to dealership and having your credit run repeatedly can be harmful. Instead, find a dealership that specializes in helping buyers with less-than-perfect credit—like Mike’s Car Store. We’re experienced in working with customers who need a little extra help getting approved.
6. Keep Your Info Updated
Make sure your driver’s license, insurance, and other documents reflect your current address and info. Inconsistent information can slow down the process or even cause your loan to be denied. Double-check everything before heading to the dealership!
7. Consider Local Lenders
National lenders might not be as flexible as your local credit unions or community banks. Local lenders often take your whole financial picture into account and might offer better rates if you’ve maintained a good relationship with them. Plus, they’re more likely to understand your unique situation.
8. Keep Learning
Buying a car is a big decision, so continue to educate yourself. At Mike’s Car Store, we’re always here to offer advice and guidance to make sure you get the best deal possible.
Get Approved for Used Car Financing at Mike’s Car Store
Buying a used car doesn’t have to suck. If you’re in the Georgetown, Louisville, and Floyd County areas and looking to buy a vehicle with bad credit, buying pre-owned can be a great option. Here at Mike’s Car Store, we offer quality used cars, trucks, vans, and SUVs for all budgets. Browse our inventory today and contact us anytime for more questions.
Ready to find your next car? Visit us at Mike’s Car Store near Louisville, KY, where we’ll help you every step of the way. No matter your credit situation, we’re dedicated to getting you behind the wheel of a car you’ll love! Get affordable used car financing today!
