Bad Credit Special Finance Car Loan – 5 Tips For Getting Funded Faster
By: Robert Frost
Having a vehicle is still a necessity for most individuals and families. The reasons for owning a car far outweighs the reasons not to. But you probably already know that since you are reading this article either for your own benefit or to benefit a friend.
For at least a quarter of us, landing a great deal on a car loan is not nearly that easy. There are ‘catches’ to be aware. The more common story that people tell is getting rejected by their banks or their haggling with local dealerships over the right price for an hour or more (sometimes with multiple visits to the dealership). Then, they spend more time negotiating with the financing department to get a good deal on a car. In the end, they leave the dealership without getting the offer they were looking for – or maybe no offer at all. BUMMER!
If you are anything like me then you were probably taught to haggle and not accept the first offer. This is smart but I would only advise doing this when there aren’t existing conditions that would prevent you from getting what I’m after. The good news is that not all car loan companies are bad. Some truly offer guaranteed financing with reasonable rates and approval requirements.
Fortunately, there are ways to get qualified through bad credit auto financing specialists. You may even receive a confirmation call that you have just been approved – today.
The companies that you would look at (if you have less than perfect credit) deal primarily with bad credit situations and many have streamlined processes that makes getting a car + loan as simple as possible with less hoops and headaches. They are willing to shoulder the risk and carry the load. You just have to hold up your end of the bargain and make payments! Keep in mind that it is in their interest to make their customers happy to encourage referrals and maybe earn repeat business.
If you are reading this article right now then you are most likely looking for a bad credit special finance car loan in order to get the car of your dreams.
Without further delay, here are 5 steps for getting funded faster:
1. Understand what bad credit special finance car loans are:
If you have a less than perfect credit score than be prepared to pay a higher interest rate. Getting an auto loan is not a problem for most people but knowing which company is the best can be confusing. Many bad credit car loan companies approve people daily even with if the applicants have very bad credit. Just make sure that you are able to make your payments which will help to rebuild your credit. Failure to do so could worsen an already bad credit situation.
2. Get multiple quotes from other bad credit special finance lenders:
This is pretty straightforward. Just like hiring a car mechanic or surgeon, you wouldn’t just deal with anyone would you? Of course not. You would ask some questions and get a feel for what you would be getting. Does the loan company offer a multitude of services? Can they meet your loan requirements and get you a rate that you can afford? How responsive are their agents in getting back to you? Do they have enough vehicles to meet your criteria? What additional perks do they offer that others don’t? Are there hidden charges (catches) that you don’t find out about until after the fact?
Perhaps one of the biggest areas to look for is how quickly they respond to your initial inquiry. Be careful with companies that request many fields of information. Rather than providing all of your personal details (SIN, credit card information, and other information that you wouldn’t normally give out to anyone) start by providing your basic contact details. Name, email, address, phone is fine. As long as you meet basic requirements such as $1300/month in income ($1800+ generally offers better rates) then you could get a guaranteed loan.
3. Evaluate each lender and look for signs of credibility and leniency:
Going back to point 2, do they give you the opportunity to pre-qualify? Do they have active partnerships with auto dealers or do they have their own inventory? Are they primarily a lead generation company that re-sells your information to multitudes of car dealerships across Canada or do they directly finance or sell cars? (Hint: The latter cuts out the middle-man). If the company doesn’t follow up quickly or often, it is usually an indication that they don’t care. It is best to deal with a company that can offer you with a personalized solution for your needs.
4. Pull your free credit report and fix any misreported items:
You should be checking your credit infrequently but also fixing errors when you do. You can get one each per year from TransUnion, Equifax and Experian. Go through them and make notes on anything suspicious or incorrect. If you find anything, get these errors corrected. Sometimes it can be a missed payment from years back that you either forgot about or may have paid. Other times it can be a case of someone that is using your identity with loans under your name. There are reported horror stories of children whose identities were used to take out mortgages. Companies offering bad credit car loans should be willing to assist you through the process with a free consult in order to help you get financing and a car. Don’t let loan companies push you around. Even with less than perfect credit, you still have options.
5. Follow through with submitting applications to at least 3 lenders:
Choose the top 3 most credible looking lenders and apply to all of them (just providing your basic contact details at this point). Once you are contacted back for a follow up over the phone, you may get one, two or three offers within 24 hours. If you applied providing a lot of information, companies may sometimes use that against you before you even have a chance to explain your situation. Other than that, by following these 5 simple tips, you will then be in a better position to compare rates and potentially saving hundreds or thousands of dollars in the process. Moreover, picking the right company to work with can also provide you with an increased credit rating which will help you get better rates in the future.
6. Extra Tip: Ask for a pre-approval letter and walk it into the dealership in order to purchase the car of your dreams.
When you arrive prepared, it saves time for both you and the dealership. After all, you want to get approved for a car loan and into a better car sooner rather than later right?