If you are wanting a loan for a vehicle but your credit history has been less than perfect then you might be looking for cars for bad credit, which are advertised often on the radio and television. Many times you will see advertising for ‘any credit okay’, or ‘we accept all credit’ and many people want to know is this a legitimate claim and how they can get financed through this seemingly easy company that will offer vehicle financing to anyone. We’ll go over exactly what these companies mean when they say they will finance anyone and where to turn for used cars for bad credit.

First of all the car dealership for bad credit that you see or hear advertised will generally be telling the truth. If you go into the dealer and apply for a car loan, then you will likely not be denied altogether. Instead, if you have poor credit, they will ask you for a high down payment, as much as fifty or sixty percent of the car’s value. This of course is impossible for most people, but  technically the car dealership is advertising correctly. With the right down payment, they truly will finance anyone regardless of their past credit history.

If you cannot afford to put half down on cars for people with bad credit then you may have to do some work on your credit report. A few factors other than your credit score that affect whether or not you get approved are your income, job stability and time at your current residence, as well as your debt to income ratio, or how much debt you have as opposed to your income. These factors may allow you to get bad credit financing for cars, even if you have a borderline credit score. We’ll go over how you can use these factors to your advantage.

You should have at least one year on the job and a year at your current address in order to be approved with borderline credit. The higher your income is, the better off you are, because a high income can add a lot of weight to an application for credit. As far as your debt to income ratio, it should be thirty five percent of lower. You can calculate your debt to income ratio by figuring out your monthly payments percentage as opposed to your monthly gross income. If these factors are all present then you may be able to get by with a small down payment on a borderline credit score.

Another place to find cars for people with bad credit is a buy here pay here car dealership. You will find cars for sale for bad credit at these lots specifically. These lots will often not do a credit check, but instead will rely on having lots of information such as your home address, job address and phone numbers and the numbers of several of your relatives and friends so that they can find you if you don’t make the payment. They may also repossess the car very quickly, so be sure that you make your payments on time if you finance through one of these on the lot financing car dealerships.