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Getting approved for a car loan with low credit in Illinois is possible with the right preparation and approach. Here's a step-by-step guide to improve your chances
Car Loan with Low Credit
∙ Check your credit report from all three bureaus (Equifax, Experian, TransUnion).
∙ You’re entitled to one free report per year via AnnualCreditReport.com.

Understand your score range:
∙ 300–579: Poor
∙ 580–669: Fair
∙ 670–739: Good
∙ 740–799: Very Good
∙ 800–850: Excellent
Set a Realistic Budget:
Figure out how much you can afford monthly, factoring in:
o Down payment
o Monthly loan payments
o Insurance
o Taxes and fees
Save for a Down Payment:
∙ A larger down payment reduces the lender’s risk.
∙ Try to save at least 10–20% of the car’s price if possible.
Get Preapproved:
∙ Shop around with different lenders:
o Local banks and credit unions
o Online lenders (e.g., Capital One Auto Navigator, Caravan)
o Subprime lenders (specialize in bad credit loans)
∙ Getting preapproved gives you a better idea of what terms you can expect.
Consider a Cosigner:
A cosigner with good credit can greatly improve your chances of approval and help you get better loan terms.
Be sure they understand the legal responsibility — they are equally liable for the loan.
Provide Proof of Income and Stability:
∙ Lenders want to see you can repay the loan.
∙ Bring documents like:
o Recent pay stubs
o Tax returns (if self-employed)
o Utility bills or lease agreements to prove residence
Choose a Less Expensive Vehicle:
∙ A cheaper, reliable used car may be easier to finance.
∙ Focus on getting approved now and refinancing later when your credit improves.
Review the Loan Terms Carefully:
∙ Check the interest rate (APR), term length, monthly payment, and any fees.
∙ Watch out for hidden fees, prepayment penalties, or inflated add-ons.
Improve Your Credit Over Time:
∙ Even after approval, work on boosting your credit:
o Make payments on time
o Pay down existing debts
o Avoid new credit inquiries