Posted Tuesday, February 28, 2023
Can I obtain a car loan with bad credit in Indiana? Previous or current bankruptcy? No credit history? The answer to all of these questions is YES! At Indy Auto Man used car dealership, Indianapolis, we have 30 banks available to help our customers obtain a vehicle loan, regardless of credit history! Our finance experts are here to help get you preapproved car loans for bad credit for any citizen of Indiana state!
Limited credit can mean many different things, but ultimately to a bank, it means that a consumer has not had enough loans, credit cards, or other forms of credit to lower the risk to the bank. In addition, if a consumer has had credit, but the time period is too recent to show the long-term ability to repay on time, the bank may consider that risk as well. Customers who need an auto loan for low credit in Indianapolis should expect that a bank may ask for a minimal down payment or a lower purchase price. You will possibly need a qualified co-signer to get pre-approved for a bad credit auto loan.
Many people that come to a dealership in Indiana for loans with bad credit are looking for a vehicle after having just graduated high school, college, or are just simply looking to purchase their first vehicle. We have banks that will approve customers that have no credit, though they will typically look for good income, job stability, and possibly a significant down payment.
Believe it or not, there are financial institutions in Indiana that will still lend to consumers with prior repossessed vehicles. Similar to a bankruptcy, the bank will want to see either reestablished credit since the repossession, or a significant down payment to offset the lack of reestablished credit history.
We have several banks that work with customers in Indiana to obtain vehicle loans that have either completed bankruptcy or are in the middle of bankruptcy.
If a borrower has completed a bankruptcy, the banks will look at the consumer’s credit history since the bankruptcy was completed. For those that don’t have much history since the time the BK was discharged/satisfied, a larger down payment will sometimes satisfy that requirement. For those still in bankruptcy, Indiana banks will request a letter from the trustee or court documents showing that the borrower is permitted to acquire new debt.
It may seem obvious, but the only way to build credit is to obtain new credit such as an installment loan, credit card, mortgage, etc. In general, longer-term loans such as a car or home loan in Indiana state are a better way to build your credit quickly, as opposed to revolving debt such as credit cars. For those looking to start building credit, obtaining a preapproved bad credit auto loan in Indianapolis is a great way to generate and increase your score quickly, assuming on-time payments are made.
While buy-here-pay-here dealerships offer terms with no credit check and no down payments, it does not help build your credit. Most BHPH lots do not report your payments to any credit bureaus, which means your hard work on making on-time payments isn’t helping your credit score.
Finding a dealership in Indianapolis that can approve you with even a small down payment is a much better option so that you can build credit and get qualified for lower rates on any future purchases.