Having less-than-perfect credit doesn't mean you're out of options when it comes to buying a car. Plenty of Utah drivers finance vehicles every year with credit scores well below ideal, and a lot of them end up with reliable transportation and a plan to rebuild their credit along the way. The key is understanding how the process works and knowing how to put yourself in the best position before you ever walk into a dealership. Here's everything you need to know.
What Counts as "Bad Credit" for an Auto Loan?
Credit scores run from 300 to 850. In the auto lending world, where your score falls determines what kinds of rates and terms you'll qualify for. Here's a general breakdown of how lenders categorize buyers:
If you're in the subprime or deep subprime range, financing is still very much available, especially through dealerships that work with a wide network of lenders. Utah buyers in this situation have options. The rate may not be ideal, but getting into a reliable vehicle and managing the loan responsibly is how you change that number over time.
Check Your Credit Report for Errors Before You Apply
This step gets skipped too often, and it's one of the most impactful things you can do. Errors on credit reports are surprisingly common, including things like:
• Accounts you never opened
• Incorrect balances
• Payments reported as missed when they weren't
• Old debts that should have dropped off your report
Each of those can unfairly drag your score down. You can pull your full credit report for free at AnnualCreditReport.com. If you find an error, dispute it with the credit bureau that reported it. Corrections typically take 30 to 45 days, so if you have a little time before you need the car, cleaning up your report first is absolutely worth it. Even a 20 to 30 point improvement can move you into a better lending tier and save you real money over the life of the loan.
Save for a Down Payment
A down payment helps in two ways when you have bad credit. It reduces the amount you need to finance, and it signals to lenders that you're financially committed to the purchase. Both of those things make you a more attractive borrower and can help offset a lower score.
Here's a quick look at how your down payment affects the loan on a $22,000 vehicle:
Even 10% down makes a meaningful dent in what you'll pay over time. If you have a vehicle to trade in, that equity counts toward your down payment too. Check out our post on how to trade in a car in Utah for tips on getting the most out of your trade.
Get Pre-Approved Before You Visit a Dealership
Getting pre-approved for financing before you shop is one of the smartest moves a buyer with challenged credit can make. Apply through your bank, a credit union, or an online lender to get a sense of what rate and loan amount you qualify for. Walking in with a pre-approval gives you a spending ceiling and a rate benchmark to compare against what the dealership finds.
Dealerships work with multiple lenders, sometimes dozens, and because of that volume they can sometimes secure better rates than you'd find on your own. It's worth letting the finance team try to beat your pre-approval. If they can, great. If they can't, you've already got a solid option locked in.
At Riverdale Mitsubishi in Riverdale, Utah, our finance team works with a range of lenders specifically to help buyers across all credit situations. You can start your financing application online before you even come in.
Choose the Right Vehicle for Your Situation
When you're financing with bad credit, lenders look closely at the loan-to-value ratio: how much you're borrowing relative to what the car is actually worth. Choosing a vehicle with strong resale value and a reasonable price tag makes your application more attractive.
Affordable, reliable vehicles from brands with solid resale value work in your favor here. Mitsubishi offers several models in the $20,000 to $30,000 range that hold their value well and come backed by a 10-year/100,000-mile powertrain warranty. That warranty matters to lenders because it signals lower risk of the vehicle losing value quickly due to mechanical problems. For Utah buyers trying to get approved, that's a real advantage.
Browse our inventory to explore options at different price points. We carry both new and used vehicles so Utah shoppers have flexibility depending on their budget and what lenders can approve.
Understand the Loan Terms Before You Sign
When buying with bad credit, it's easy to focus only on the monthly payment and miss the bigger picture. Here's what to actually pay attention to:
Longer terms lower your monthly payment but significantly increase the total interest you pay. A 60-month term is usually the smarter choice when possible. Ask the finance team to show you the full cost of the loan over its entire life, not just the monthly number.
According to the Consumer Financial Protection Bureau, subprime borrowers should pay particular attention to total cost of credit and always read the full loan agreement before signing. It's worth the extra few minutes.
Use This Loan to Rebuild Your Credit
Here's something a lot of people don't think about: an auto loan can actually help you rebuild your credit if you manage it well. Payment history is the single biggest factor in your credit score, and consistent on-time payments will gradually move your score in the right direction.
Set up autopay so you never accidentally miss a payment. After 12 to 18 months of on-time payments, your score may improve enough to refinance at a lower interest rate, which lowers your monthly payment without changing vehicles. That's a real, achievable outcome for most Utah drivers in this situation.
Think of this first loan as a stepping stone. You're not stuck with a high rate forever. You're building toward better options.
We're Here to Help at Riverdale Mitsubishi
Our finance team at Riverdale Mitsubishi has helped hundreds of Utah drivers get into reliable vehicles regardless of their credit history. We work with lenders across the spectrum and take the time to find options that actually make sense for your situation, not just the first thing that gets approved.
Start your credit application online or come see us at our Riverdale location. Browse our full inventory of new and used vehicles and let's find something that works for you. Bad credit doesn't have to mean no car.