How to Get Bad Credit Auto Loans Fast & Secure
Looking to get a new car but know your credit hasn’t quite got what it takes? No problem! There are still car loans for people with bad credit. Many people know they have ‘bad’ credit, but don’t know what ‘bad’ means for their possibilities. Below you will find 7 steps that you can take to get approved for bad credit car loans, despite having a damaged credit score.
Easy Steps to Auto Loans with Bad Credit
Check Your Credit
When it comes to knowing where your credit scores stand, it’s easy to assume the worst. But, don’t stop there. When you apply for a loan we provide you with the option of checking your own credit score. As a result, you’ll be able to begin your search for a car knowing all the necessary financial facts.
Learn More: Getting Bankruptcy Car Loans
Do Some Car Shopping at Local Dealerships
Some lenders will take one glance at your record and immediately turn you down. Others may be more flexible. Don’t give up hunting just because you’ve been turned down. Shop around locally and find a local bad credit dealership that can help you.
Learn More: First Time Car Buyer Program
Bring a Friend (Don’t Get Scammed)
Car salesmen are not your friends. While it may seem unnecessary to bring a pal they can be another set of eyes and ears and help you work through poor loan terms which could drastically affect your auto payments and credit rating.
Think Investment and Not Short Term
Many people get caught up in car shopping for lower monthly payments. While this may seem good, paying off small balances over longer periods of time will cost you more in the long run. Instead, look to cut back on expenses and improve your loan payments. Try and go with a more expensive monthly payment that will allow you to pay off your full bad credit auto loan in less time.
Avoid Non-essentials Like Extra Auto Insurance
Non-essential services appear in lots of contracts for high-risk loan borrowers. Most of the time, these are goods you don’t need, and shouldn’t have to pay for. It’s never safe or profitable to base the loan on extended warranties, insurance, or aftermarket services.
Watch Out for ‘Yo-Yo’ Sales
If the buyer doesn’t double-check the final terms they could find that their payments are much higher then expected. This is called “yo-yo” sales. These sales are far more common among buyers with poor credit than ones with good credit. Be sure to confirm with the dealer on final terms before signing anything.
*KEY TIP: Car Salesmen are not your friend. Make wise financial choices by bringing a trusted friend, spouse, or loved one along.
Read more on How to Get Fast Financing For a Car with Bad Credit
Auto Loans for Bad Credit: Rates You Can Expect to Pay
This is the average rate you can expect to pay annually based upon your credit status and a national average car loan of $20,000.
Two Vital Keys to Getting Auto Loans for Bad Credit
First, Overcome Typical Fears that come with Bad Credit
You might be feeling apprehensive about applying for auto loans, but you don’t have to be. Keep your shoulders back and your head held high!
A reliable car is a necessity. There’s no reason to feel ashamed of needing a little bit of help.
Here are some of the most common fears people with low credit face:
- Having to buy a piece of junk – Even lower credit scores can get approved for a decent vehicle but, don’t buy too much. It’s better to start small, buy a used vehicle, and pay it off fast.
- Being denied – We accept all applicants and can almost place everyone with appropriate dealer financing.
- Getting stuck in an auto loan commitment that will potentially bankrupt you – Getting a car can help you improve your credit. Get a reliable car with a low payment and you’ll be fine.
- Paying high-interest rates that make the cost of your vehicle thousands of dollars more than it’s worth – You need to get a loan and pay it off fast if your credit is really bad.
- Having to get a cosigner to get approved – We can get our applicants approved without a cosigner with in-house dealer financing. As long as you have a job, most dealers will accept your application.
- Being unable to make your bad credit auto loan payments – You do need a job. If you have a job, make sure your monthly car payment is no more than 5% of your take-home pay.
Second, Plan Ahead with Auto Loans for Bad Credit
These are reasonable fears and it’s good to be aware of them, but one thing that we’ve learned about fear is that you can’t let it cripple you. Don’t let it keep you from living. Being cautious and planning ahead a little can help you make the best decision. Here are three tips to keep in mind when applying for a car loan with bad credit:
- Take a little bit of time to find a reliable, used vehicle (get a second opinion if you feel unsure)
- During this time, save up for a down payment and pay bills on time to improve your credit rating
- Do some research on your own and compare offers online with companies that specialize in auto loans (you’ll be able to go at your own pace and avoid the pressure to make a quick decision)
Let Us Give You Guaranteed Vehicle Loan Approval
Everyone deserves to have a reliable car at an affordable price. We can help you build a plan that will guarantee your approval and get you the car that you need. It’s time to regain your confidence and get you back your independence.
How to Get Bad Credit Auto Loans Without Using a Cosigner
If you have horrible credit you may feel like the only way to get an auto loan is by having a cosigner. It is true that having a cosigner will increase your chances of getting a loan with lower interest rates. But, if you do not feel comfortable asking someone, some other options include:
Take Time to Fix your Credit
- Come up with, and put in place a credit repair strategy. By sticking to a plan, you can improve your credit score within a few months and potentially buy a vehicle of your own.
- Make sure you focus on what you’d rather pay off first. Decide whether you’d like to pay off your small or larger accounts first. Whichever option you go for, put together a payment plan and commit to it.
- Keep up with current bills and repayments. Remember to pay your bills while paying off your debt. Make a monthly budget that incorporates both new and old debt and pay all lenders on time, every time.
- Explore credit-building tools. A great, risk-free option to boost your credit score is using a secured credit card. This type of card allows you to set up an account with your own money to “borrow” from. You can make purchases with the card and the credit bureaus recognize your payments. Another great option if you rent your home or apartment is the service called Rental Kharma. For a small fee, Rental Kharma will report your rent payments to the bureaus. Your credit score will get a boost just for making rent payments on time.
Use a Buy Here Pay Here Lender
If you need an auto loan ASAP, a buy here pay here loan may be a great option. You will be able to get approval for a buy here pay here loan if your income is satisfactory. Most lenders don’t even check your credit score! This is an easy and convenient way to get a loan without a cosigner. We offer buy here pay here loan approvals through an online application. The form takes 60 seconds to fill in and approval takes less than 2 minutes.
Simple Checklist to Guaranteed Approved Bad Credit Car Loans
Here are 5 simple tips to getting bad credit car loans:
Learn more: Big Auto Loan Benefits for Good and Bad Credit
Know your Score Before you Shop
Not only should you look at your credit report, but you must know your credit score. This way you’ll have the most recent information. To learn more about getting your credit score, contact us today.
Check Scores Vs. Interest Rates
If you check what scores get what interest rates, you’ll be able to get an idea of what terms you will get. You should also check what monthly payments you will incur for your specific situation.
Don’t Assume your Score is Too Low
Actually, there is no credit score low enough to not get a loan. Different lenders accept auto loans for people with subprime credit in all different financial situations.
If you Have a Low Score, Save Up
Auto buyers with low credit should save up for a down payment. Attempting to save 20% of the price of the automobile is a realistic goal for a new car. For a second-hand car, saving 11% would be enough. Choosing to make a larger down payment could give you better terms in the long run.
Consider a Reliable, Used Automobile
Finally, for lower prices, it is worth looking into getting a used car. This can be especially helpful for consumers with a poor credit score. The interest rates are usually higher for used auto loans. Auto buyers should check pricing guides to make sure they know the true value of the vehicle they want to buy. Whether you buy a new or used car, do your research to find out how reliable it is. Check how much your monthly payments will be and whether the numbers are realistic for you.
Should You Get Used Auto Loans with Bad Credit?
Bad credit can creep up on anyone. Maybe it happened because of credit card debt due to some emergency or lack of a job. Maybe it was carelessness. Either way, there’s no way that you sat down one day and thought “Hmm, I think I’ll try to get make my credit worse.” Here are some things to remember when you start searching for a loan for a used car:
Consider Your Options
Think long and hard before getting a cosigner. Remember that if you can’t make your payments, your cosigner will be stuck with them. Even though it is important for you to have auto financing, it might not be worth it if it will ruin a relationship.
However, you decide to secure your auto loan, try and make a sizeable down payment. Some auto loan providers will provide the option of zero down. This option is attractive, especially in an emergency situation.
If you’re ready to secure an auto loan for a used vehicle today, you’re in luck! Bad credit or good credit, we will guarantee you auto loan approval in 60 seconds or less and it’s free!
3 Big Auto Loan Benefits for Good and Bad Credit
While it would be great to pay for a new car in cash, that’s obviously not realistic for most people. Buying an automobile after an expired lease could work, but this method has its own drawbacks. Below, we have highlighted 3 specific reasons why getting an Auto loan is the best method to buy a new car.
With auto refinancing, most companies will loan you enough money to pay off your old loan. This means that you will have lower monthly payments. In turn, these lower payments mean you can put more money toward future payments. This will enable you to pay off your loan sooner with less interest. This opportunity is not available in any other way.
Better than Leasing
After having settled on an auto loan, every auto payment you make takes you one step closer to owning the vehicle. With leasing, you can only rent the vehicle for a certain amount of time before its gone. At the end of the lease, you have the option to either return it or buy it. With a lease, you do not get any closer to owning a car.
Auto insurance is another matter. If you get into an accident, the insurance is a lot higher on leased vehicles. With an auto loan, insurance companies pay for the damage based on the vehicle’s market value. This will reduce the risk of you needing to compensate for damages
Early Payoff Advantages
With a car loan, you will not be penalized for an early payoff. When you have a loan you can pay more to save money on interest rates. With an early payoff, you will improve your credit score. Consequently, you will be able to secure other loans with better terms in the future.
6 Car Loan Bad Credit Mistakes You Should Avoid
People today believe they know everything they need to about buying a car. Although most of the information online is correct, there can be mistakes. This can cost you money in the long run. Car buying is an emotional decision. This emotional need can cause you to make irrational decisions. By doing your research beforehand you can avoid common mistakes many buyers make.
Avoid these six common mistakes to keep yourself out of car-buying trouble:
Don’t Just Focus on the Ticket Price
When shopping for a car most buyers only think about the ticket price or final negotiated price. It is important to take into account all the other expenses associated with buying a car. Some of these include taxes and license fees. In many states, taxes alone can add up to several thousand dollars. If you don’t factor in these fees, you may end up signing for a deal that is not in your budget.
Make Sure your Down Payment is not too Big
Buyers often invest all their money into their down payment. You will end up “upside-down” on your loan which could take time to get out of. Making a down payment of 10 to 20 percent will help avoid burying yourself in your auto loan. If you invest every cent in your down payment you could end up defaulting on your payments in the future.
Do Not Let Your Guard Down
Most buyers let their guard down after they buy their car. But, a dealership makes the most money after the sale is complete. The lender takes over with high-interest rates and expensive extended warranties. It is important to continue bargaining even after the initial price is set.
Take Time to Think about your Decision
Buying a car is a huge decision. Making a brash or irrational decision will cost you money in the long run. Or worse, it could land you in more debt. Often, a sales pitch that says “the deal is only valid today” can seem too good to be true. In all honesty, it probably is. The deal isn’t going away and may even get better. Take 24 hours to think and shop around. If the deal is not there the next day, another one will come up.
Start Shopping with a Plan and your Requirements
By not knowing exactly what you want, the power is in the salesperson’s hands. If you go car shopping with a plan you will be able to distinguish a good deal from an impulsive one. Make sure you write a list of the things you need and your budget and stick to it. Otherwise, the salesperson will try and sell you a car that suits them rather than you.
Do Not Focus Solely on your Monthly Payments
Maybe you have planned your budget and know exactly how much you can spend each month. Don’t go shopping with that figure in mind. If you tell the salesperson you won’t have any room for negotiation. As a result, the salesperson is likely to come up with a deal that matches that budget even if it’s not worth it.
We not only make the loan process easier for you with the help of our network but we listen to your requirements and find lenders that best suit you. By contacting us today, you could get approval in just a couple of minutes!
We also provide:
- no credit
- buy here pay here
- tote the note
- negative equity
- high risk
- classic car
- low income
- zero money down
- first time
- second chance
Major City Areas We Also Serve:
Hastings, NEAntonio, TXSarasota, FLOakland, CAManchester, NHPhoenix, AZPetersburg, FLHigh Point, NCMilwaukee, WIOmaha, NETampa, FLTulsa, OK Salinas, CABedford, MACharlotte, NCMonterey, CAWinston-Salem, NCMiami, FLDenver, COColumbus, OHProvidence, RIAngeles, CAHouston, TXLincoln, NEDetroit, MILauderdale, FLNew Orleans, LASalt Lake City, UTBaltimore, MDBoston, MANew York, NYGreensboro, NCKearney, NEAustin, TXPittsburgh, PASan Diego, CASan Jose, CAPortland, ORAtlanta, GA Chicago, ILSt. Louis, MO San Francisco, CACharlotte, NC
9 Most Popular Bad Credit Car Loan FAQ’s
Financing a car with bad credit is when you buy a car with a vehicle trade-in or little to no money down (or both) with a lender who first runs a “risk assessment” on your financial history and provides you with in-house financing.
Most bad credit financings occur within a local dealership. After they’ve reviewed your application they will call you in for an appointment to show you which vehicles you qualify for. Once you both agree to the right vehicle they will call a lender and provide you with a quote on the interest rate’s that are available. If you agree to the deal then you can buy a car.
There are about 30 national lenders for people with horrible credit. Only a handful of lenders will give you a direct loan while most providers will work with a local dealership near you. Some of these banks include First Financial, Capital One, and Wells Fargo. You can also check with your local credit union for financing options.
According to Experian, a fair credit rating is 580-669 while a poor credit rating is 300-579. Shoppers can expect to pay between 3.99% and 15.99% on average for a car loan. Your interest rate is determined by your credit score and debt to income ratio (DTI). If you have poor credit but a good DTI then you have a better chance of receiving a lower interest rate.
The most common place to get a loan near you when you have horrible credit is through a local car dealership. They will be able to match you with a car and the correct lender based upon your credit score and debt to income ratio.
The fastest way to get matched with a local dealership near you is to apply online with Complete Auto Loans. Your credit will not be pulled (unless you approve it to be pulled) until you sit down with them and discuss your options. The online process only takes about 60 seconds and a dealer will call you “same day” to set an appointment.
You can get approved with a 450-500 credit score if you have an acceptable debt to income ratio, downpayment, or a vehicle trade-in to prove your intent to repay the loan.
Guaranteed financing for people who have bad credit is a false promise. You should steer clear of local dealers who guarantee approval. However, 99% of car shoppers can get a car loan through a local dealer by simply applying with us online.
You can get approved for a 0 down loan with a local dealership if you have a cosigner or you can be accepted at choice car lots if you have a vehicle trade-in and a good debt to income ratio.