Do you suffer from a bad credit history? If so, the search for a car loan to purchase that new or used vehicle that you need can be a long and stressful one. You may have to replace that vehicle that you have been driving forever, or need to get a new one for your spouse or children. Whatever your reason for needing a car, you cant let bad credit hinder you.
Account charge-offs, past due bills, bankruptcy, collections and a myriad of other credit ailments the list just keeps on going. These are the terms that most loan companies dont like to hear about coming from applicants that are trying to get a car loan. If you have these issues on your credit report, then getting a car loan with no money down is going to be tough at a normal, mainstream loan company or car dealership.
So how can you get it? You can get a car loan with no money down, with ease if you use an online lender that is in the business of getting this done for people that need a car loan. These types of secondary lending sites match you with a loan company and rather than you going to them, they will come to you with offers for a car loan. With so many loan companies in the US, it would take you a very long time to find which one will work best for you with bad credit.
If you are in a tough situation financially and want to obtain a car loan quick, then this type of lending service can help you. There are so many folks in this country that have had foreclosures, repossessions and lost their jobs because of the financial problems that major corporations have gone through over the last few years. Its affected a lot of people.
Its just the way that things have gone for many people but luckily, there are some lending services that have changed the way that they do business to accommodate people that need a loan. One of the benefits of using a source like this is that you aren’t limited to having to choose from the inventory of just one car dealership. You can choose to get a car from a variety of sources.
While you generally cant get private party financing, you can get a reasonably priced vehicle that you can be proud to drive. If you haven’t already, you should look into online auto loan. Bad credit doesn’t have to hold you back from seeing what you can qualify for.
HOW YOU CAN FINANCE A CAR EVEN WITH A LOW CREDIT RATING
It is definitely a bummer when you need a car but you cant get approved for a car loan because your credit score is low. Many people encounter this setback when they have had previous problems paying off loans in the past. A credit check will consequently reveal a very poor credit score, and difficulties will arise when applying for any type of financing in the future.
To avoid such problems from hindering your loan application, you will need to fix your bad credit status and gain a better rating. One example of credit repair methods is examining your credit report and determining the problem areas that can be modified. By making sure that the report is accurate, you will have the chance to dispute any errors that may be the cause of your low credit rating.
In case there is no way you can possibly tweak your credit report to improve your current credit score however, there are still alternative options that you can consider if you are truly determined on making a car purchase. You can start thinking about going for bad credit financing methods that are specifically designed for people who have bad credit ratings but are intent on getting a car loan.
CAR LOANS FOR PEOPLE WITH BAD CREDIT
Often, the question of whether or not you will get approved for a car loan with your bad credit status lies on the type of financing you are applying for. For instance, your chances of car loan approval when you apply at a bank or a credit union with a low credit score will definitely be low. You will be lucky to even be considered for a loan.
In most cases, you will only receive a car loan from a bank or credit union if you can persuade a friend or family member who has an excellent credit score to co-sign the loan with you. By being your co-signer, this person is essentially allowing you to make use of his credibility and creditworthiness for you to get your car loan despite your bad credit status. This reassures the bank that in case you are unable to pay back your loan, they can trust your co-signer to cover for you.
On the other hand, if you apply for an auto loan at a sub-prime lending company or a car dealership, you wont have to worry about your bad credit rating getting in the way of the transaction. Even without the help of a co-signer or guarantor for your loan, you can easily be approved as long as you meet their requirements.
Usually, all they will be requiring is things like proof of permanent residence to assure them that you wont be likely to run away from your loan in the near future, and proof of stable income to show that you are capable of making the scheduled payments on time. Because these loan options are created especially for people who have bad credit and cannot get a car loan elsewhere, you wont have much difficulty applying and eventually getting approved even if you have no credit at all.
HOW TO OBTAIN BAD CREDIT AUTO FINANCING EASILY
Looking for bad credit auto financing may seem like an insurmountable task for many, but the truth is that if you push the search button harder, you will definitely be able to find lenders willing to finance you to get a new automobile with reasonable terms and rates. By shopping online, you will discover the ease at which you will get a bad credit loan no matter how bad your credit score is. Also, this applies to those who don’t have a credit history. However, for you to obtain bad credit auto financing, there are a few things which you should do.
1. OBTAIN YOUR CREDIT REPORT
Make sure you obtain your credit report from reputable credit reference bureaus. If you check online, you will discover sites that allow you to print copies of your credit reports free-of-charge. However, you can pay small amounts and get your comprehensive credit reports from reputable bureaus. As a matter of fact, there are car dealerships who will work with you to get favorable bad credit auto financing.
2. LOOK FOR CO-SIGNERS
Ask a relative or friend who has an excellent credit record to cosign the auto financing loan for you. Many dealerships approve auto financing arrangements to customers who have solid cosigners in no time. If you don’t have a person with an excellent credit record who can sign for you, you can check online and talk to bad credit auto dealers.
3. FIND BAD CREDIT AUTO DEALERS
There are many buy here pay here auto dealerships that offer good financing arrangements. These dealers can offer financing no matter how scary your credit record looks. If you locate a good dealer, you will be able to get a good ride at great terms and unbelievable rates. If you check in the classifieds, you will discover there are lenders who advertise that they can work with people with adverse credit histories. Take advantage of this and engage them to offer you the financing you need. Know that some dealers prefer working with borrowers who have had problems in specific types of loans such as foreclosures. Its always good that you make
financing arrangements ahead of time and ensure everything is budgeted appropriately.
4. BUDGET WISELY
After you have cranked the financial figures, you need to sit down and check if the figures fit your budget. You shouldn’t stretch the amount you can afford as this could exert undue pressure on you. When buying a car on damaged credit history, there is no need for you to get fleeced with high interest rates. You don’t have to pay a fortune for an asset that depreciates considerably over time. Its prudent that you factor into account the automobile insurance rates and any necessary maintenance when working out the cost.
5. KEEP FIXING YOUR TATTERED CREDIT HISTORY
When you keep making your repayments on time, your credit rating will improve significantly. Make sure you are committed to meeting your obligation when the time is due. As you progress with your payment, you can opt to make higher installment payments and you will not have to obtain a bad credit loan again.