Did you know that credit scores have only been around since 1989? Before they existed, getting credit was less standardized but a lot more personal, with credit agencies calling local merchants to ask, “What do you think of John Smith?” The merchant might say kind things (“He always pays on time”) or share less flattering opinions (“He hasn’t paid in three months!”), and the lender would decide whether to loan the money based on that personal judgment.
These days, credit scores are the name of the game, and they can have a huge influence on your financial life, including your ability to get a car. That’s why so many people with less-than-stellar credit wonder how to rent to own with bad credit. Is it possible? Will you need to make up for a low credit score somehow? How does the rent-to-own process actually work?
Yes, You Can Rent to Own a Car with Bad Credit
First of all, yes: it’s absolutely possible to rent to own a car with bad credit. In fact, it’s one of the easiest ways to get into a car when your credit score isn’t up to par! Many rent-to-own dealers (sometimes called lease-to-own dealers) don’t run traditional credit checks at all. Instead, they look at your stability: steady income, how long you’ve lived at your current address, and a valid driver’s license.
How to Rent to Own with Bad Credit, Step by Step
1. Find a reputable dealership.
Before you start the approval process, make sure you’ve found a dealership you can trust. Ask people you know for recommendations or search online, paying close attention to customer reviews. When you visit potential dealerships, consider their selection of vehicles, customer service, and the total cost (down payment, regular payments, and any fees).
2. Ask how taxes, tags, and repairs are handled.
These details can make a big difference in what you pay upfront. If possible, look for a dealership that spreads sales tax across your payments instead of charging it all at once, handles your tags and registration, and covers property tax while you’re making payments. Ask about warranty coverage too, so a surprise repair doesn’t derail your budget.
3. Get approved and choose your car.
Once you’re approved, the process of getting a car is fairly simple. Keeping your budget in mind, you’ll select a vehicle. Be sure you can comfortably afford both the down payment and the regular payments. Before you sign on the dotted line, it’s also a good idea to ask about the car’s history and condition to ensure you’re getting a quality vehicle.
4. Make your payments, and the car is yours.
From there, you’ll keep making payments for the agreed-upon term. At Auto By Rent, that’s typically 2.5 to 4.5 years. When the term is complete and you’ve made all of your payments, the car is yours!
Why Rent to Own Instead of Buy Here Pay Here?
Rent-to-own works a lot like financing, but it’s technically a lease: the dealership owns the car until your final payment, and then ownership transfers to you. Because approval isn’t based on your credit score, it’s much easier to qualify for than a traditional auto loan. It’s also a great way to avoid the ridiculous interest rates that come with many Buy Here Pay Here loans. So if you’re eager to get a car but you’re afraid your credit score will hold you back, take a look at rent-to-own dealerships. They might be the perfect solution.
No Credit? Bad Credit? Don’t Sweat It!
If you’re interested in renting to own a car, be sure to check out Auto By Rent, a rent-to-own dealer in Springfield, Missouri. We don’t run traditional credit checks, sales tax is built into your payments, and we handle your tags and licensing for you. Every vehicle also comes with warranty coverage.
Ready to learn more? Get pre-approved online, call us at 417-447-7979, or stop by our lot at 1835 E. Chestnut Expressway in Springfield.
We look forward to hearing from you!
Originally published February 24, 2021 · Updated November 2026