Top 5 Myths About Bad Credit Car Loans (And the Truth)

When it comes to bad credit car loans, there’s no shortage of myths floating around. Unfortunately, many of these misconceptions prevent people from pursuing the financing they need. Today, we’re setting the record straight.

Myth 1: You Can’t Get a Car Loan with Bad Credit

Truth: You absolutely can. In fact, many of our dealer partners specialize in working with customers who have credit challenges. Whether you have a low score, past bankruptcy, or a consumer proposal, options are available.

Myth 2: You’ll Always Pay Sky-High Interest Rates

Truth: While interest rates are influenced by your credit history, competitive rates are still possible. Factors like down payments, employment history, and loan term all play roles in getting you the best deal through our dealer partners.

Myth 3: Only New Vehicles Qualify

Truth: You can finance both new and used vehicles with bad credit car loans. In many cases, a gently used car provides better value while keeping monthly payments more affordable.

Myth 4: You Need a Huge Down Payment

Truth: Not necessarily. Many of our dealer partners offer low down or even zero down payment options depending on your income and overall application. Having a down payment can help, but it's not always mandatory.

Myth 5: Applying Hurts Your Credit Score

Truth: Submitting a soft application through Cars with Chloe won’t impact your score. Only a full credit check performed after you select a vehicle and financing option can cause a small, temporary dip—and even then, it’s often minimal.

Conclusion

Don't let misinformation hold you back from getting the car you need. With the right dealer partners and a clear understanding of how bad credit car loans actually work, you can drive away confident and financially empowered.

At Cars with Chloe, we’re here to connect you with trusted dealerships ready to help.

👉 Learn more about bad credit car loan options here.