What to Know About Bad Credit Car Loans

The decision to buy a car can be a big one to make. Before you get too excited, you need to make sure that you are in a good financial position to buy a vehicle. Cars can be expensive and many people need to financial assistance to buy a car. Loans are the most common type of financing available to consumers. Unfortunately, not all borrowers will qualify for the loans that they are pursuing. Often this is due to a bad credit score.

While it may seem frustrating to have bad credit when you need financial assistance, there are a couple of options to consider. Bad credit car loans are designed to help consumers who do not have ideal credit scores.

How It Works

Most lenders look at the credit score of a potential borrower when they are attempting to buy a vehicle. When the score is low, it is a strong sign for the lender to deny the loan to the borrower. With a loan for bad credit, things are a bit different. You are more likely to qualify for a bad credit loan even if your score is quite low. These loans are structured to help borrowers with bad credit so the odds of being approved are much higher.

The Details

There are a couple of catches to loans structured in this manner. For one, the interest rates associated with loans like this are somewhat higher. Borrowers with bad credit will always receive higher rates for their loans. While it can be frustrating, you will be able to keep your payments down by staying on top of your game. Make a financial plan in advance and try and pay back the entirety of the loan in less than the time specified in your terms.

When the time comes to buy a car, you need to think over your financing options. If you have bad credit, then take a look at loans structured for borrowers in the same position and see if any of the options work for you.

Get Your First Car Regardless of a Low Credit Score

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.

Five Steps to Getting a Loan With Poor Credit

Reversing poor credit requires hard work, and that hard work is even more challenging when you don’t have a car. Fortunately, there are some steps you can take to get transportation to and from your job.

One: Have an Open Mind

With a poor credit history, you probably won’t be able to secure a traditional loan, but you may have more success with bad credit car loans. These typically have higher interest rates, so be prepared to pay a little more.

Two: Stay Away From Additional Credit

One of the most common mistakes people make when using credit to make a major purchase is to open up a new credit card or account. You may want to take a look at your credit history, checking for errors and correcting inconsistencies.

Three: Be Realistic Concerning What You Can Afford

There are two important parts to this. The first is your monthly payment. Consider your most difficult months and determine how much of a payment you’d be able to make at those times. Your car payment probably shouldn’t be much more than that. The second thing to consider is the overall cost of the vehicle. Consider how much you’ll have to pay as a down payment, how much maintenance the vehicle will require, and how much gas and insurance will cost.

Four: Try to Find a Co-Signer

If you have a friend or family member with good credit, you can improve your chances for getting a loan. The terms of that loan will also be easier to live with. That co-signer (or co-borrower for even more benefits) will give the lender assurance that the loan will be paid, even if you struggle to make payments.

Five: Don’t Settle

While being realistic about your options, you can still discuss better terms, such as the length of the loan, the interest rate, prepayment penalties, and annual percentage rate. Factors such as the prepayment penalty may be much easier to get rid of, whereas the interest rate may be harder to negotiate.

Poor credit will make obtaining a loan more difficult, but it shouldn’t prevent you from getting a car. Use these tips to improve your chances.

3 Ways to Help Financing Your Car

If you are looking for effective ways to reduce the price of your new or used car or to make buying a used car easier than ever, then check out our three tips for financing your car purchase. These tips are designed to be effective for everyone – no matter what your current budget or financial situation is. By using one or all of these financing tips, we hope that you will be able to save a significant amount of money off of the cost of your car – no matter what your financial requirements are. Without further ado, here are our three most helpful financial tips:

Go for the loan

Many of our customers are aware that they will need a car loan in order to more easily afford the right kind of car for their needs. While many customers have to choose between buying a less reliable car with the small amount of cash that they have or buying a car that will suit their long-term needs with a loan, we always think the decision should be easy: go for the loan. Sure – if you buy a less reliable car with cash, you won’t have a loan to think about. However, you may have more repairs on your plate and the car may not be as safe as it should be. Taking out a small car loan can not only help you to afford a car that will suit your long-term needs, but it can help to ensure that the car you buy will be safe and durable for years to come. Trust us: it’s worth it.

Trade-in to trade-up

We have a helpful trade-in program that helps many of our customers trade their existing cars in for money off of the cost of their new cars. Some customers use their trade-ins to get better cars while other customers use their trade ins to reduce the overall price of the new or used car. We’re happy to help you determine the value of your trade-in so that you can maximize your savings and get the right car for you.

Look for deals

We have special deals going on for our customers all of the time. These deals change, so you’ll have to contact us to find out what deals are going on now or may be coming up. However, these deals are designed to help you get low interest rates, low down payments, cash back, or other great financial arrangements you’ll love.

We look forward to helping you save your money. Contact us first for car loans and bad credit car loans today to learn more about how we can help you!

Car Financing That Works

Finding a used car in good condition can be a great deal. They are affordable and you often get excellent value for your money. Once you have identified the car you want, you need to get through the used car financing process to pay for it. Know what to expect and be prepared.

Know What You Can Afford

Used cars cost several thousand dollars, and taxes and registration fees can add up. Take a look at your personal financial situation and estimate what payments you can afford and how money much you are prepared to put down. A larger down payment will lower the principle balance of the loan and reduce your monthly payments. If you can’t afford a down payment towards the value of the vehicle, at least try to have enough to cover the cost of taxes and fees. Also, make sure your monthly payment fits within your budget comfortably.

Financing Options

Borrowing money costs money. The interest rate is the price you pay to use the lender’s funds to purchase your car. A higher interest rate will increase the overall cost of your car and contribute to higher monthly payments. Having excellent credit can help to lower interest and finance charges.

The term of the loan is how long it will take you to pay it back. It is possible to lower the monthly payment to fit your budget by stretching the payments out over a longer period of time. This may increase the interest rate slightly and will impact the total finance charges as well.

Additional Payments

It’s always a good idea to protect the value of your car with an extended warranty. It is your responsibility to maintain and repair your vehicle, and it can end up costing you thousands of dollars to fix a major mechanical problem. Mechanical issues are no excuse for missing your loan payments. It is a good idea to consider adding an extended warranty. It may cost a little more up front, but will protect you from those unexpected expenses in the long run.

It is illegal to drive without auto insurance. When purchasing your vehicle, consider the monthly insurance premiums as well. Most lenders will require you to carry full insurance. Have your insurance set up ahead of time so that your lender is prepared to fund the deal without delay.