How does a judgment affect my ability to get a car loan?

@alan 

A judgment can have a negative impact on your ability to get a car loan. Here's how it can affect you:

1. Credit score: A judgment will remain on your credit report for a certain period, typically seven years or more. It will significantly lower your credit score, making it harder to qualify for a car loan. Lenders consider your credit score to assess your creditworthiness and determine the interest rate you'll receive.
2. Loan approval: Lenders may view a judgment as an indication of financial instability or a history of unpaid debts, making you a higher-risk borrower. This can lead to loan rejections or higher interest rates.
3. Down payment and terms: If you manage to get approved for a car loan despite a judgment on your credit report, the lender may require a larger down payment or offer less favorable terms due to the increased risk associated with your credit history.
4. Lender preference: Many reputable lenders have strict underwriting guidelines, and some may have policies against approving loans for individuals with outstanding judgments. This can limit your options and force you to seek alternative lenders or buy through in-house financing from the dealership at potentially higher interest rates.
5. Co-signer: In some cases, lenders may consider approving your car loan application if you have a co-signer with a strong credit history and income. However, co-signing puts the co-signer at risk if you're unable to make payments, and it's essential to consider the potential consequences for both parties involved.

Overall, a judgment can make it more challenging to secure a car loan, primarily by negatively impacting your credit score and causing lenders to view you as a higher-risk borrower.