When you need to buy a car, but your credit’s bad, you may struggle to find a loan at all, let alone one with the type of terms you can live with. However, there are some things you can do to ensure that you’ll be eligible for bad credit car loans.
Work Toward Improvements
Even though you have bad credit, you can turn it around enough to at least show some improvement. This single step may help you work out better terms than you might expect from a so-called “bad credit loan.” To complete this step, check out your current credit score. Sometimes, the reporting agencies will also provide tips on how you can improve your score. Within months, you should see some progress, and this can help you get into a better loan situation.
Don’t Rack Up Inquiries
Did you know that every time you apply for a loan, your credit score takes damage? If you head into one credit purchase after another, you’ll end up damaging your chances of getting any loans, even those that are intended for people with low credit scores. When you’re ready to shop for a car, don’t open up an account at your favorite shopping center.
Don’t Be Misled by Low Interest Rates
Loans with longer terms generally have lower interest rates. Short-term loans, on the other hand, have higher interest rates. In many cases, in spite of those higher rates, you’ll still spend less when you choose the short-term loan. If you can’t qualify for one of these loans, be sure to check about an early pay-off penalty, so that you’re free to pay off your debt as quickly as possible.
Make All Your Payments On Time
As you’re working hard to improve your credit, you may be tempted to pay more towards one loan and let other loans suffer. However, every late payment can damage your credit score. This is especially true of any mortgage payments.
As you work toward improving your credit to the point that you can get a loan for that car you need, carefully stick to good credit principles. In time, you’ll have a score to be proud of.
Having poor or bad credit makes it difficult to get a loan. Not being able to get a loan means that you can’t improve your credit score. It’s almost a catch-22, unless you find a lender willing to work with you. Our dealership is that partner who wants to help you find bad credit car financing to keep you on the road and get you back into a more positive financial situation.
Pre-Approval Based on Your Income
When obtaining a car loan when you have bad credit, you do need to have a job with steady income. You should be prepared to show pay stubs as proof of this. Your credit score may not be perfect, but we have lenders who understand that bad things happen to good people. You deserve a second chance to turn your finances around.
Make Sure Your Loan Fits Your Budget
By watching your budget and making sure you can make payments on your loan, it improves your credit rating. It’s important to take a look at your finances and make sure you can fit the payment into your financial plan. Even if you have to economize for a few months, it is worth counting every dollar to get your credit score up and have the car you need to get around.
Work With Us to Find Financing
We want to keep you on the road. We know the importance of a car to get around. You need a reliable car. We have what you’re looking for. Apply online to get pre-approved and allow our finance experts help you get the car loan you deserve.
We won’t pressure you into making a sale because we want you to be happy with your purchase for a long time. Our reputation is important to us. When you’re ready to get the car you need, come to us to see what we have to offer. We won’t disappoint you.
When it comes to improving bad credit scores, it’s important to understand that improving your credit requires commitment and that may take several months or years to actually improve your credit in a meaningful and long-lasting way. However, by getting started with the process of improving your credit today, you’ll be setting yourself up to have a better financial situation for years down the road. Remember: most meaningful actions take time to see to fruition – and improving your credit is no different!
Here are 4 important steps you can take today to start improving your credit for the long-term:
Take out a Car loan
Even if you have to take out a high interest rate loan, take out a loan and commit to repaying it. One of the best ways to improve your credit is to get started developing a track record of financial responsibility, which means repaying loans and other debts on time and in full. However, in order to repay those debts, you have to actually take one out!
If you’re like many people, you probably have several different credit cards and loans at any different time. You probably also have a balance on these debts. In order to increase your credit score, it’s important that you minimize the amount of money that you owe to lenders. Therefore, make a plan to repay these debts as soon as possible. For many people, fully repaying these debts may take several years. However, by starting today, you can turn your financial situation around in a way that will last for years to come.
Review your credit report
A startling number of people have false information on their credit reports that negatively impact their credit scores and credit history. Therefore, it is recommended that you review your credit score on an annual basis in order to ensure that all of the items on your credit score are accurate and true. Contact us for more information about how to review your credit report.
If you have assets that you own, you will be improving your overall wealth and financial situation. An asset is any larger item with value, such as a home loan or car loan. By acquiring these assets, you will be able to improve your financial situation. Contact us today for more information about how buying a car can help to improve your credit score.
The search for a new car carries with it plenty of financial implications. Any dealership you go to has plenty of offers for you, but that doesn’t mean you shouldn’t do your own research in order to find what’s best for you. Auto loans come in all shapes and sizes, making your research and your understanding of what you can afford all the more important.
Find a Loan with Low-Interest Rates
The annual percentage rate (APR) is of the utmost importance when it comes to what you will truly pay in the end. The APR for any loan literally shifts on a daily basis and is based on the length of your loan agreement. A shorter-term loan results in lower interest rates but a larger monthly payment, whereas you have the options to stretch out that same loan and pay less monthly, but your total cost, in the end, will be higher. Find out how you can lock into the best interest rate possible for your situation.
Look at All the Options Available to You
The same way you shop around for the best car at the best price, you should shop around for the best loan. There are plenty of lending options – from big banks and the dealership itself to smaller banks and credit unions – or you can deal with an auto finance company like ours and we will do all the work, so it’s not a situation where you have to settle.
Understand Where You Stand Financially
Monthly payments, total cost once the loan is paid in full, what type of credit you have, and much more will have an impact on what type of loan you works best for you. It all starts and ends with what fits into your budget, so the decision is and should be based on your full understanding of your finances and what works best for you.
If you’re in the market for a new car, you may be considering your financing options. In today’s economy, many people do not pay for cars with cash. Instead, people may look to obtain car loans through financing and pay the loan back in monthly installments.
While you’re crunching numbers, it may be helpful to review the following facts about obtaining financing for a vehicle. The more you know, the better prepared you’ll be to get the best financing for your quality used car.
Credit Scores Are Important
It’s important to remember that your credit score can provide a general financial profile. Various questions may be answered by reviewing a credit report. Have you paid your past debts back in a timely manner? Do you have a high debt-to-income ratio? How long have you been working on establishing your credit?
Your credit score can also make a difference in the interest rate you’re given and the amount of money you’re allowed to borrow. If you have low debt compared to the pay you bring home, you may qualify for a higher car loan. If your debt-to-income ratio is high, you may be awarded less money in a loan.
Shorter Terms Can Offer Better Interest Rates
Sometimes, a shorter-term loan can offer you better interest rates. A lower interest rate is often worth pursuing, as it can save you money in the long run. If it’s possible, look to obtain a loan for payback in three years instead of five. When pursuing a short-term auto loan, though, it’s important to be sure you can afford the monthly payment.
When purchasing a car today, many people are choosing to finance their car loan instead of paying in cash. Knowing the importance of your credit score and choosing a short-term loan are tools for getting the best loan possible.
You may have studied hard and practiced for weeks before taking the test to get your driver’s license. Now that you have a license and can drive around to different places, such as work, school and even the grocery store, you may want to make sure you have your own vehicle to get around. It is certainly not fun relying on other people and waiting around for them to drive you to the different places you would like to visit. However, you may think it is impossible to get a car at this moment.
Is your credit score low? When reviewing your credit report, you may have noticed that your score is not so good for a number of different reasons. For example, you may have a lot of debt and inquiries. Even if you are making payments on your credit cards in a timely manner, your score could still be low if you have too many inquiries and way too much debt compared to available credit. Even so, that does not mean you should be denied the opportunity to get a car that you want and need for different reasons.
If you are worried about getting denied, you can contact us. We offer bad credit car loans for those with less than perfect credit scores. We realize that things happen and not everyone will have the perfect score, but we believe in offering an opportunity to those who are in need of a vehicle. We offer a large selection of different cars to choose from, too. If you want to stop depending on others for a ride and be able to drive around on your own as often as you would like, consider completing our secure online credit application process for a loan. The process is simple and fair. Before you know it, you could be driving away in your first car.