Getting a Car Loan with Bruised Credit

BFG offers you the information you need to get a car loan with bruised credit

Auto loan financing can be tricky in the best of circumstances. However, for consumers who have problems on their credit report, even if it's on the way back up, the process to get a car loan may become even more daunting. It doesn't have to be impossible though, and it doesn't have to incorporate terrible interest rates that are more burden than benefit. Use this guide to get a car loan even with bruised credit.

  1. Get the Facts: Don't enter into an auto loan arrangement without knowing all of the facts first. This means obtaining a free copy of your credit reports at, the only authorized website authorized to fill orders, for the free annual credit report you are entitled to under law. Beware of imposter sites that use terms like “free report” in their names. Do not pay to receive a credit score, because lenders use different models to determine your rate. Review the report to make sure the reporting is accurate. If not, you can contact the 3 credit bureaus to dispute any inaccurate reporting. If you have trouble understanding the reports, your local credit unions and banks can assist you and determine your next steps.

  2. Get the Car Loan First: It's always a wise idea to obtain auto loan financing before stepping into the dealer. This provides a negotiating advantage, as well as more favorable terms. Local banks and credit unions are more likely to take a personal approach with each consumer, and will be able to provide better terms that the dealers can't, or won't, match.

  3. Lower Rates are Always Better: There are lots of ways to get confused with the specific costs of an auto loan. However, the key to remember is that the lower the rate with a car loan, the better. Low rates over a short time equals less interest, period, even if lower payments are available over longer terms.

  4. Find Value: Not every car on the market is as good a value as another. For someone with bruised credit, finding a deal on the car being purchased makes a huge difference. It is important that you obtain the invoice pricing the dealer paid for the new auto or the retail pricing of the vehicle. These can be obtained from,, or other auto pricing/value sites. An informed buyer makes for a smart negotiator. If you have a down payment either through a trade-in vehicle or savings, this is another positive toward obtaining the car loan. This will lower the amount of money that is needed for auto loan financing, making the loan less risky for the bank or credit union. There's also less risk on the consumer-side as well, with less debt and more disposable cash on hand.

  5. Fixed vs. Variable: While the majority of auto loan financing is made with a fixed interest rate, dealers sometimes like to include variable rate clauses in the fine print. Don't fall for the trap of a low introductory interest rate that gets tripled six months down the road.

BFG Federal Credit Union strives to provide the best and most competitive auto loan financing rates. Even for individuals with bruised credit, there's an auto loan solution that may make sense for them, and BFG Federal Credit Union works with those who live, work, worship, attend school or volunteer in Summit County, Ohio, including Akron and Hudson. Find the latest car loan rates and details by visiting today.