Secured car loans require you to put up a down payment, which can be as high as 20% of the purchase price. Having no down payment requirement makes these loans easy to get, even with bad credit. However, you may be able to get a lower interest rate and more favorable terms if you can make a larger down payment.
Get a credit builder loan
Credit builder loans are usually made to improve the borrower’s credit history or increase their credit score. They also enable the borrower to make on-time payments, establish a positive payment history, and increase the credit score and limit. Once you improve your credit score, you can apply for a better car loan.
Consider subprime lending options
Subprime lending is a type of lending that is available to people with bad credit. Subprime loans typically come with higher interest rates and shorter repayment terms than conventional loans, but they can provide an alternative for those who are unable to get a traditional loan.
Borrow from family or friends
If you have friends or family members who are willing to lend you the money, this can be a great way to get the money you need to buy a truck without going into debt. However, be sure to set clear terms for the loan, such as the amount of time you have to repay it and the interest rate (if any).
