Can I Buy a Car with Bad Credit?

Trying to secure a bad credit loan can seem like an impossible task, but with the help of Serra Honda of Champaign, it doesn’t have to be.

At our dealership, our Honda finance team will work with you to secure an auto loan, regardless of your credit score. Here’s how to go about getting a bad credit loan for a new Honda car.   

Know Your Credit Score and Improve It

You might think you have a bad credit score, but do you actually? Use a free website like Experian to check your credit score and see if you can improve it.

If you need to raise your score, avoid starting any new lines of credit and pay down any existing debts you may have. If you do this for a few months, you could greatly increase your credit score.  

Set a Price Point

Before you select your next model, determine how much you can afford. Remember to factor in costs of insurance, maintenance, and interest rates when you set your budget. You don’t want to spend more than you can muster, so save around 10 to 15 percent of your monthly income for your new car.  

Save Up for a Down Payment

Even if your credit is bad, a large down payment can help you out during the financing process. In the long run, you won’t have to take out a large loan if you can pay a significant portion of your car with your down payment. 

Get Pre-Approved

Before you meet with our finance team, see how much you can get pre-approved for. Using either another credit union or our online application, you can see whether or not the vehicle you want to buy is within reach.   

Visit Our Honda Finance Center  

From signing leasing agreements to navigating trade-in deals, our Honda finance team is here to help you every step of the way. Visit us today to get approved!