 TITLE: How to Get a Car Loan With Bad Credit CONTENT: Where Can I Get a Car Loan With Bad Credit?\n-------------------------------------------\nBefore you apply for a car loan, it's important to become familiar with the various borrowing options you may have. Some lenders offer loans to those with poor credit, but others may not. Knowing how each lender works beforehand could save you time and energy in the application process. Here are the most common types of auto financing:\n*   **Captive financing**: This type of financing is organized directly through the manufacturer and kept in-house. That means not only are you buying a car from a dealership, but you also finance the loan directly through them. This type of financing is not always an option with used vehicles. These loans may also be easier to get for someone with less-than-perfect credit, as captive lenders can be forgiving and have an incentive to issue you a loan to buy their car.\n*   **Dealer-arranged financing**: In this situation, the dealer works with different lenders to find and obtain a loan for your vehicle. Once you apply, you may get several loan options from which you can pick the one with the best terms. This option could be good for someone with fair credit, as your information will be shared with several lenders at once—including at least a few that should consider applicants with imperfect histories.\n*   **Bank or credit union**: Banks and credit unions may have options for financing an auto purchase. Similar to any other loan, you would simply apply with a banker and receive a preapproval that you then take to the dealership. This loan is paid back directly to your bank or credit union back on a monthly basis. This could be a good option for people who already have an established relationship with a bank or credit union, as they may overlook blemishes in your credit history and use your experience with their institution as evidence of your creditworthiness. If you can't go into a branch, you can also apply for many bank loans online by visiting bank websites and looking for auto loans.\n*   **Online lenders**: Nowadays, online banks and fintech (financial technology) companies also offer auto loans. The process when applying for these loans typically takes place all online, and interest rates can vary widely depending on the lender. To find one of these offers, you can search generally online for auto loans, looking specifically for companies that exist completely online. You can also use a single aggregation website that allows you to use one application to receive several loan offers. Just be wary of unfamiliar companies and do your research to determine whether a lender you're considering is reputable and offering a fair deal.\n*   **\"Buy here, pay here\"**: These dealers specialize in working with people that have no credit or poor credit. Instead of sending your loan to an outside lender, they finance the purchase of the vehicles on their lot themselves. There are many downsides to this type of financing, however, including high interest rates, high down payment requirements and a potentially limited vehicle selection. END