Frequently Asked Questions About Bad Credit Car Loans

Whether you have bad credit or simply want to know about how to obtain a bad credit car loan, we have the answers to common questions that you may be asking yourself or your lenders. Before you read these questions and answers about getting a bad credit car loans, keep in mind that we offer bad credit car loans, regardless of your credit history or financial situation. If you do not find the answers to your specific questions about getting bad credit car loans in this article, then contact us to ask us your questions in person.

Why does credit affect my car loan?

Whenever you go to take out a loan for anything, such as a car, a house, or another major purchase, your lenders will need to assess the risk level associated with taking out that car loan. If you have a bad credit history, then the lender may decide that the risk level is higher with giving you a loan because they may determine that you will have a harder time paying back the loan. Don’t worry if this is the case; it doesn’t mean that you won’t get a loan, but it may mean that you’ll have a higher interest rate and lower loan amount. Each situation is different, so contact lender for more details about your specific situation.

How long will it take me to pay off the loan?

The answer to this question completely depends on each person. When you come in to take out a loan, your lender will factor the amount of the down payment that you are able to make, your current income level, and the interest rate that you’ll need to pay. Each of these characteristics will help to determine how long it will take you to pay off the loan.

You’ll have some input as well. If you prefer to make lower monthly payments, then the loan amount will be longer. If you are able to make higher monthly payments, then you may be able to get a shorter loan amount. We can show you a variety of different loan options so that you can determine which is best for you.

Does the loan only cover my car?

Yes. If you take out a car loan, then you are legally obligated to use the full amount of that money on the car. The car is collateral that the lender will be able to repossess if you are unable to pay off the loan. The amount of the collateral is factored into the loan amount and interest rate that you will get. Therefore, the lender needs to be sure that he or she can recuperate his or her losses if you are unable to pay off the loan.

Contact us today to speak with one of our credit specialists. We can get you approved and driving. Apply Today, its quick and easy, and you usually get an answer within 24 hours.

Finance Your Car and Drive in No Time

A new car doesn’t have to be out of reach. Most people don’t have the kind of cash lying around to pay a down payment on a car. They especially don’t have the extra money to pay for a car in full. It’s important to look at the options available to you when this is the case. Cars can be more than luxuries. For many families, they are imperative to daily life. Car loans give people the opportunity to get on the road again. These are two tips that will help you if financing turns out to be right for you.

First Steps

The first step that you want to take is searching for someone who can offer you the loan that you need. It’s imperative that you find someone that is willing to work with you to find the car that you want the most. When you have a reliable job, it’s easy to be approved for a car loan. You want to make sure that you have the right lender in mind. This is the person that’s going to help you get the best deal on a vehicle that could last you for years.

Bad Credit

Many people are unsure about car financing when they have bad credit. The truth is that there are still options for people out there that have a lower credit score. If you find an auto financing company like us that understands that bad credit often comes from life events that can’t be helped, you can rest assured that you won’t be left in the dark about the kinds of car loans available to you. You won’t be turned away based on your bad credit. In fact, we specialize and truly care to work with people who have lower credit.

By no means do you have to be without a car. Financing a car can be simpler than purchasing one outright. These tips can help make that a reality.

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.