How Does Financing a Car with Bad Credit Work?

Car key & credit card on a signed contract

Thinking of buying or leasing a used or new car, but have credit that’s less than great? Perhaps you’re financing a car for the first time but have no established credit? Wondering how financing a car with bad credit works? It’s a more difficult process than it would be if you had existing credit, but it’s definitely possible to finance a car with bad credit in the greater Grand Island area! Find out more about how bad credit car financing works with Midway Auto Dealerships before reaching out to our finance experts for loan options. 



Bad Credit Car Finance Advice

If you’re attempting to finance a car with no credit history, it’s important to remember that the down payment may be more than the average and the interest rates may be higher. Approach the process with a defined budget and leave some breathing room for unexpected costs. You’d also do well to keep the following financing tips in mind: 

  • Don’t Automatically Assume You Won’t Be Approved: Holdrege shoppers like you might be convinced that only certain financing options are available because your credit needs a little work. There are some financing institutions that are more than sympathetic to your case. Make sure to ask questions and explore all your alternatives – you may find there’s a financing option in the Hastings area that benefits you better. 
  • Improve Your Credit Score As Much As Possible: Have bad credit? Build it up as much as you can! Construct a payment plan, start paying off any outstanding debts, and use your credit card on minor purchases that you can immediately payback. This will improve your credit score quickly!
  • Apply for Loans the Smart Way: If you’re applying for financing, your credit score can take a hit. Submit all of your loan applications within a 2 week period of time to limit the potential damage to your credit. 
  • Don’t Settle for Just Any Offer: Your first offer isn’t necessarily your only offer. Just because your credit isn’t the best doesn’t mean you have to accept the first offer you receive. Many dealerships near Lexington use multiple lenders, so if you think there’s a good chance you could get a better offer, go for it! 
  • Be Prepared for Higher Costs: You may have to place a larger down payment and have higher interest rates on a loan if you have no credit history or bad credit history. 

Bad Credit Car Financing? Not a Problem at Midway Auto Dealerships!

Here at Midway Auto Dealerships, our finance team understands that financing a car with bad credit can be a hassle, so we streamline the bad credit car finance process to make it as simple as possible. Contact us to apply for financing online, explore your leasing options, and decide whether or not you should buy or lease your next car, truck, or SUV in Kearney. 


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