How to Get a Car Loan With Bad Credit

What Is Considered "Bad" Credit?

Most lenders consider credit scores below 600 to be "bad credit." Even if your score is higher, issues like missed payments, bankruptcies, repossessions, or a thin credit file (meaning little or no credit history) can make approval tougher. The important thing to remember is that many auto lenders are specifically set up to help buyers in this exact situation. They understand that life happens and that people need reliable transportation to move forward.

But here's the truth

When applying, it's a good idea to bring documents that strengthen your application. These include recent pay stubs or bank statements showing income, proof of residency (like a utility bill), and proof of employment. If you're able to make a down payment-even a small one-it demonstrates to lenders that you're committed and lowers their risk.

Can You Really Get a Car Loan With Bad Credit?

Yes. In fact, car loans are one of the most common types of credit for people working to rebuild their financial history.

Auto lenders typically look at:

• Current income and employment stability

• Current debt obligations

• Down payment available

• The car you're buying (lenders prefer reliable, affordable vehicles)

• Your credit profile-but bad credit is NOT an automatic rejection

Things to Keep in Mind When Returning a Leased Car

Choosing the right vehicle also matters. Lenders prefer to finance cars that are reliable, affordable, and backed by a warranty if possible. This is why Certified Pre-Owned vehicles are often a great choice for bad credit buyers. Subaru's lineup-Crosstrek, Forester, Outback, and Ascent models-are well known for reliability, safety, and long-term value. This makes them particularly attractive both to buyers and lenders.

At South Shore Subaru, we specialize in helping buyers with bad credit, no credit, or limited income. We also offer first-time buyer programs and Subaru's College Grad Program, which provides special incentives and flexible approvals to those just starting to build credit. Our finance team works with a wide range of lenders who understand that bad credit doesn't define your future.

Whether you're local to Long Island or shopping from anywhere in the country, we're here to help you get approved-and get back on the road with confidence. Call us now or start your pre-approval online today. We'll guide you through every step of the process. Finally, you'll want to bring along all the keys for the car as well as the up-to-date service book.