Having bad credit and needing tires to get to work is a catch–22. You need one to deal with the other.
It may make you feel a little better to know that you’re not alone. Sixty-eight million Americans have bad credit. And although financing tires with bad credit may seem impossible, there are options.
Keep reading for our best tips on tire financing, even with bad credit.
1. Check Your Credit Rating
Before you start the process of searching for tire financing, use a free credit report service to check your credit rating. In reality, your credit rating may be better than you think. Don’t settle for bad credit loan options if you don’t have to.
2. Take Advantage of Sales
If you don’t need tires immediately and have time to plan ahead, take advantage of tire sales. You’ll save money and won’t have to finance as much either.
Tire sales come with the changing seasons; spring and fall. Look around to find the best deals in your local area and online.
3. Watch for Hidden Costs
Sometimes tires shops will add on extra costs for things like new stems, getting rid of your old tires, or tire insurance. Pay attention, ask questions, and know what the final price is before you give the okay.
These types of added costs will increase the amount that you need to finance. You can do without most of them.
4. Family and Friends
Before you seek out a loan for tire financing, ask family and friends if they can help you out. Make sure and keep your word to pay them back when you say you will. If you ever need help again, they’re more likely to give you a hand if you’re trustworthy.
5. Secured Loans
Rather than using your credit rating as the assurance that you’ll pay back borrowed money, secured loans use property. For example, the bank using your car as security for a loan. If you don’t pay, the bank gets your vehicle.
Secured loans are a way to get the money you need for tires without having great credit.
6. Buy Used Tires
Most retailers that sell tires have used one available on the cheap; $20 per tire is not uncommon. Most times, these tires come from other customers that buy new ones. They must meet a certain standard before considered salable.
Buying decent used tires will save you a bundle while getting your car back on the road fast.
7. Get a Co-Signer
With no credit or bad credit, getting someone to co-sign for you will get you a loan. Your co-signer should have good credit. In the lender’s eyes, this person is responsible for the loan should you default.
8. Personal Loan
A personal loan to buy tires might work for you. These types of loans are based on your verifiable income.
Once approved, your money gets deposited straight into your checking account. You can get one within 24 hours of applying.
9. No-Credit-Check Tire Retailers
Find a tire dealer who offers a no-credit-check financing option. Often-times, this kind of financing allows you to pay off the tires within 90 days to avoid paying any interest.
10. Payday Loans
Since payday loans charge such a high interest rate, consider them as a last resort. With up to a 500% interest rate, plus other required fees, your tires will cost you much more than the selling price.
Yet, if push comes to shove, it’s nice to know that this option is available to people with bad credit. You’ll need to have proof of employment to qualify for a payday loan with no credit check.
Financing Tires with Bad Credit: What’s the Bottom Line?
Planning for unexpected financial burdens is hard enough without having lousy credit; we hear you. But don’t give up, there are options for financing tires with bad credit. Use the tips above to get your car back on the road.
Ready to apply for tire financing? Check out our bad credit loan options today. We’re here to help!