How to Get Car Loans for People with Bad Credit Fast & Secure
7 Ways to Getting a Car Loan with Damaged Credit
- 7 Ways to Getting a Car Loan with Damaged Credit
- Common Fears When Dealing With Bad Credit Auto Lenders
- How to Get Car Loans for People with Bad Credit without Using a Cosigner
- 5 Easy Tips for Getting Car Loans for People with Bad Credit
- Used Car Loans: How to Get Used Car Loans with Bad Credit
- 3 Big Car Loan Benefits for Good and Bad Credit
- 6 Car Buying Mistakes You Must Avoid
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 a bad credit auto loan, despite having a damaged credit score.
1. 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. Use our complimentary credit score tool to help you work out what your score is. As a result, you’ll be able to begin your search knowing all the facts.
2. Do Some Shopping
Some lenders will have one glance at your record and immediately turn you down. Others may be more flexible and could see your record with a more positive outlook. Don’t give up hunting just because you’ve been turned down. We can meet your needs despite your subpar records.
3. Bring a Buddy
While this may seem unnecessary, it can actually work out in your favor. They can be another set of eyes and ears and help you work through loan terms should dubious terms appear.
4. Shop Short Term
Many people get caught up in 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. Try and go with a more expensive monthly payment that will allow you to pay off your full loan in less time.
5. Avoid Non-essentials
Non-essential services appear in lots of contracts for high-risk 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.
6. Watch Out for ‘Yo-Yo’ Sales
If the buyer doesn’t double check the final terms, this is called “yo-yo” sales. Days later, you could discover that your expected payments are higher. These sales are far more common among buyers with bad credit than ones with good credit. Be sure to confirm with the dealer on final terms before signing anything.
7. Aim High
Even if your credit score is too low for bigger loans, it may be perfect for car loans for people with bad credit. Use our complimentary credit score tool to discover what your score is. This will tell you how you can get approved for a car loan through us.
Common Fears When Dealing With Bad Credit Auto Lenders
Understand Your Reservations about Getting a Car Loan when You have Bad Credit
Keep your shoulders back and your head held high! There’s no reason to feel ashamed of needing a little bit of help every once in awhile. In need of a car loan, but don’t want to get a bad deal on car loans for people with bad credit? We’ve highlighted some of the most common fears below:
- Having to buy a piece of junk for a car
- Not being able to get a car loan because of bad credit
- Getting stuck in a car loan commitment that will kill your bank account for a long time
- Paying high interest rates that make the cost of your vehicle thousands of dollars more than it’s worth
- Having to get a cosigner to get auto financing
- Being unable to make your car loan payments
Plan Ahead for your Bad Credit Car Loan
There is reason to have these fears. 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 just a little can help you through your situation. Always think of these three steps when you are looking at car loans for people with bad credit:
- Take a little bit of time to find a reliable, used car (get a second opinion if you feel clueless)
- During this time, save up for a down payment and pay bills on time to improve your credit rating
- Secure car loans for people with bad credit with an online car loan provider (you’ll have an easier time comparing offers and less pressure to decide)
Let Us Give You Guaranteed Car Loan Approval
Don’t let your fears hold you back! Let them push you to a point of decision and a well thought out plan. We can help you build that plan. We’ll give you the deal that will fill you with confidence and get you back your independence.
If you have bad credit you may feel like the only way to get a car 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 car 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 setup 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 a car 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 its online application. The form takes 60 seconds to fill in and approval takes less than 2 minutes.
5 Easy Tips for Getting Car Loans for People with Bad Credit
In the market for a new car but worried that your low credit score will put the brakes on getting a good deal? Don’t worry, more buyers with poor credit scores get approval everyday. Not only this, adding their scores to the mix has brought the average score down. The following includes 5 top tips to getting car loans for people with 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 car loans for people with bad credit in different financial situations.
If you Have a Low Score, Save Up
Car buyers with low credit should save up for a down payment. Attempting to save 20% of the price of the car 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 Car
Fianlly, for lower prices, it is worth looking into getting a used car. This can be especially helpful for consumers with a bad credit score. The interest rates are usually higher for used car loans. Car buyers should check pricing guides to make sure they know the true value of the car 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 sums are realistic for you.
Used Car Loans: How to Get Used Car 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 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 bad credit.” Points to remember when you start searching for a loan for a used car include:
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 the auto financing, it might not be worth it if it will ruin a relationship.
However, you decide to secure your car loan, try and make a sizeable down payment. Some car loan providers will provide the option of zero down. This option is attractive, especially in an emergency situation.
If you want to secure a car loan for a used vehicle today, you’re in luck! Bad credit or good credit, we will guarantee you a car loan approval in 60 seconds or less. It’s free!
3 Big Car Loan Benefits for Good and Bad Credit
Of course, most people cannot pay for a new car in cash. Buying the car after an expired lease could work. That said, this method has its own drawbacks. Below, we have highlighted 3 specific reasons why getting a car loan is the best method to buy a new car.
With 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 any other way.
Better than Leasing
After having settled on a car loan, every car payment you make takes you one step closer to owning the car. 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 cars. With a car 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 Buying Mistakes You Must 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:
Do Not 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, the 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 car 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!