It’s not all that uncommon today for people to have problems getting a car loan, and you may be among those who wonder how to buy a car with bad credit. While it may be a bit more difficult finding a lender willing to take you on, there are some things you can do to improve your chances. Here’s how to buy a car with bad credit.

1. Go over your credit history and make necessary changes. – The first thing lenders do when trying to determine whether or not to lend you money is to find out if you’re a good credit risk. They run a credit report to find out your score as well as how prompt you are in paying your bills. When they see gaps in payment, or late payments, this sends up a red flag. It’s also reflected in a lower credit score. So, if you have bad credit, you’ll need to take some time – probably six months or longer – to work on bringing up your credit score and improving your credit history. Get a free credit report once every 12 months from the nationwide credit reporting agencies through AnnualCreditReport and go from there.

2. Be sure you have the right documentation you need. – When you’re investigating how to buy a car with bad credit, you’ll need to have the right documentation in hand. This may mean that you need to have proof that you are employed or show evidence of regular income through bank statements detailing deposits (probably both). Be ready with pay stubs that you can show the lender as proof you are gainfully employed.

3. Be prepared to put more money down. – How to buy a car with bad credit may also include putting more money down so that the total amount you need to finance will be less.

4. Find out what the minimum monthly earnings requirement is. – Some lenders who offer help to people inquiring how to buy a car with bad credit stipulate the minimum gross monthly amount the person must make in order to qualify. For some companies, that equates to $1,500 in gross monthly salary or income.

5. Learn about various bankruptcy filing stipulations. – There are certain requirements for those with bad credit who’ve gone through various bankruptcy filings. Be sure you learn what those are and be guided accordingly.

6. Check other requirements. – Some lenders who provide financing for persons with bad credit require that your car purchase be from their network of dealers. Know what you’re dealing with before you get too far along in the process.

Learning how to buy a car with bad credit may take you a little longer than you anticipated, but the results – if you do the work – will be worth it.

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