If you’re having a hard time making your monthly payments, here are some potential ways out.

1. Consider Selling the Car.
2. Negotiate With Your Lender.
3. Refinance Your Auto Loan.
4. Voluntarily Surrender the Vehicle.

Can you get turned down for a car loan?

Getting denied for an auto loan doesn’t in itself hurt your credit score. The lender didn’t extend anything, so there’s nothing that can hurt your score. However, multiple denied applications at once could hurt your score. If you apply for too many loans, numerous hard inquiries on your credit can cause a larger drop.

What happens if you get a bad credit car loan?

Bad credit auto financing is different from traditional financing. Your average signature loan (also known as a personal loan) has no security backing the debt. If you stop making payments, the lender has no recourse other than to sell the debt to a collections agency for pennies on the dollar.

Can you get a loan against your car?

Another thing that impacts the amount of money you qualify for when you are borrowing against your car is what year your car is. Older vehicles are likely to bring in less money. Newer vehicles are likely to get you a more substantial loan. The condition of the vehicle also influences how much money you qualify for.

Do you have to disclose your credit score when applying for a car loan?

You do not have to disclose your credit history or your current credit score, that has no weight in the process and will not influence how much you are approved for. Credit checks and credit score evaluations are not necessary when applying for a car title loan because your vehicle is your collateral, not your credit.

Are there any dealerships that accept bad credit loans?

Carmax maintains approximately 190 dealerships throughout the U.S. and offers in-house financing as well as partnered car financing deals with lenders who accept bad credit loan applications.