How Do I Finance a Car with Less than Perfect Credit?

At VIP Honda, we are committed to improving every aspect of the car-buying experience for every driver. That is why we work hard to help drivers with credit issues access the financing they need. Our professional team will work with drivers regardless of their credit, and there are also steps that anyone with credit issues can do to streamline the process. If you have any questions about the process or the vehicles you can acquire with our bad credit financing, get in touch with us today

How to Get a Car Loan with Bad Credit

Not sure how to get a car with bad credit? The process of getting bad credit car loans looks more difficult than it actually is. Although the procedure is tricky, you simply have to get some things in order beforehand to ensure that you’re making the best financing decision for you and your family. You’ll want to follow the steps outlined below to get a car loan with bad credit:

  1. Design Your Budget: The amount you can afford to pay should encompass more than just how much you can afford to borrow. Think about other expenses like annual registration fees, car insurance, maintenance expenses, and gas costs.
  2. Make As Big a Down Payment as Possible: Trying to secure a bad credit car loan? A larger down payment helps Union and South Plainfield lenders to see you more favorably as a borrower. Additionally, a larger down payment means you’ll have a smaller loan balance to pay off, leading to less interest paid overall.
  3. Get Your Credit Report in Order Before Applying for a Loan: If you catch any errors, you should absolutely dispute them because they could be dragging your credit score down. If you have any outstanding debts, start paying them down where possible – even making a small dent can help your credit score.
  4. Maintain Realistic Expectations: Getting a car with bad credit largely revolves around knowing when to spot a good deal. Your focus should be financing a car with an affordable payment (even if it’s not your dream car), and one that you can afford to take care of in the coming years.
  5. Apply to Multiple Lenders: Don’t assume that the first lender to approve you will be the only one. Apply with a handful of lenders throughout the Kenilworth area, so you can compare the rates of those who approve you.

How To Apply for Financing

Before applying for bad credit financing near Union, do the following:

  1. Determine how much you can afford to pay per month based on your budget.
  2. Make a bigger down payment if possible.
  3. Try to clean up your credit report before applying for a loan. Locate and report any mistakes.
  4. Be honest about what kind of car you should buy, and don’t get more than you need.
  5. Consider lease deals, used car specials, and budget-priced vehicles.
  6. Ask questions!

Find Value with VIP Honda

Whether you’re looking for used vehicles or certified pre-owned SUVs, our showroom near Kenilworth is the place to go for financing and advice. Stop by today!

Credit Issues Don’t Have to Hold You Back

If you need a vehicle in Union but your credit is lacking, do you know your options? The finance team at VIP Honda can offer professional advice on how to get bad credit financing. Find out how to improve your credit without gimmicks or tricks with us.

Credit ReportStart Early – Before you get bad credit financing, you need to know exactly where your credit stands. This might seem frightening, but the sooner you know, the sooner you can start rebuilding. Request a credit report in advance so that you can dive into the details. Look for errors and if there are any, report them. While you’re making sure your credit report is correct, make sure you’re paying all of your bills on time. If you’re unable to do so, it’s not time yet for bad credit financing.

Bag of money

Save Money – It’s possible to secure bad credit finance, but you will likely need to pay a larger down payment. Being able to put more money towards your purchase upfront helps to establish you as a responsible borrower. Another way to increase your down payment is by trading in your old vehicle.

People signing for a car

Find a Cosigner – If someone you are close with has a solid credit score, consider having them cosign on your auto loan. They will have to accept some of the risks, but their positive credit history also reflects positively on you. Cosigning a loan is a big responsibility for them, so be open and understanding with their answer. Your loved ones are more important than a loan.

Pile of papersOrganize Your Paperwork – A completed financing application is just one of the documents you will need to supply. Gather together pay stubs, utility bills, and possibly even character references to help the application process run smoother. If you’ve lived in your home for a long time and have been paying your rent or mortgage on time every month, this is a great way to demonstrate your ability to take on the bad credit finance responsibility. Being at your job for a significant stretch of time also speaks volumes about your character.

Couple buying a car

Shop Smart – If you already have credit issues, the last thing you want to do is make them worse by buying a car you can’t really afford. Be realistic about your budget so that you don’t stretch your long-term finances too thin. Our team can help you find a car in our used or under $15K inventory that might work for your financial situation.


Financing is Available to All Through VIP Honda

Our commitment to drivers in Union and Edison is second to none. When you have financing prepared on your end, visit our dealership in North Plainfield, explore our inventory, and work with our friendly staff in person. If you have questions about anything, please contact us directly.


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700 US-22, North Plainfield, NJ, 07060
VIP Honda 40.6267469, -74.4365914.