The Beauty of Bad Credit Car Loans

Nothing is worse than needing to purchase a car, only to realize that your credit score is holding you back. Although it is true that your score impacts every big purchase you make in life, it still is incredibly unfair and can wind up causing more harm than good to most people. Luckily, there are ways to get around this. If you need a car, but do not have the credit that you need to take out an expensive loan, you might want to see what bad credit car loans can do for you. There are many reasons to go for this type of financing when you need a vehicle.

Same Loans, Different Rules

It is important to remember that bad credit car loans work the same as any other kind of loan. You borrow money from a lender and pay it back over a repayment period, with interest added throughout the duration. The main difference is that the interest rates attached to bad credit car loans are a bit higher than average. This might seem somewhat daunting at first, but do not fear. The repayment plans for these short term loans are often fair and sensible, allowing you to make the best moves with your finances.

Benefit Immediately

Getting the car that you so desperately need is the biggest and most immediate benefit that you can expect from taking out bad credit car loans for your needs. All you have to do is find a lender that you trust, locate a car that you desire, and get ready to make magic happen. Do not let bad credit stand in the way of your dreams. Look into how these loans might be able to land you the car that you deserve, and you will easily be able to see all of the additional benefits that are heading your way.

Do not let your credit history stand in the way of your future. Explore bad credit car loans and make a difference in your life that you need.

What to Know When Buying a Car With Bad Credit

Nowadays, it seems like your credit score determines your ability to buy anything from a car to a home. While it can feel like having bad credit can stop you in your tracks for certain purchases, that is not always the case. Bad credit auto loans exist out there for those who need a car but do not have the finances to cover the purchase in full. Before you rush off to take out a loan, here are a few things that you should know going into the process.

Your Credit Score

The biggest thing that you will want to know before you take out a loan for your car is your exact credit score. Knowing your score can help you to understand what you will be looking at in regards to the specifics of your loan. The interest rates and payment plan that you will face will be determined by your score, so make sure that you do your research and know your score before you contact an auto finance company.

Your Income

Another important thing that you will want to keep in mind is your income. Look over your recent paychecks and see what you make on average. When you have a more solid understanding of your exact finances, you will have no trouble coming up with a budgeting plan that allows you to make regular payments on your loan without ever falling behind financially.

Your Plan

You should also have a plan for the process. Going into a financial situation blind is an easy way for you to feel overwhelmed. Before you make your purchase, sit down and think about what you want to get from your car. Consider your lifestyle, what you will use the car for, and how much you can afford in a down payment. When you take the time to think about all of this, you will be able to pick a car that works for you while making your monthly payments as manageable as possible.

Tips for Saving up a Larger Down Payment For a Car

In all your excitement about getting a new car, make sure you don’t forget the importance of putting down a large down payment if you plan on financing your new ride. There are all types of loans, including bad credit car loans, but most of them will require the borrower to offer up a down payment to get the ball rolling. Here are a few tips for saving up a larger down payment to reduce the amount you have to borrow, and potentially your monthly payment:

Take Care of Your Credit Cards

If you have any credit card debt, taking care of as much of it as you can means you have more money you can devote to your new car’s down payment. If you can’t fully pay off one or more of your credit cards, look into getting a personal loan so you can consolidate your debt and net a lower monthly payment. You can save the difference between your old monthly payment and your new monthly payment in your down payment fund.

Ask for a Raise

Depending on your employment record and your employer, you might qualify for a raise. Rather than focusing solely on your down payment, base your requested raise amount on your professional accomplishments instead.

If you can’t get a raise, look into doing odd jobs on the side to make some extra cash without looking for a part-time job.

Sell Unwanted Items

You may have unwanted items collecting dust and taking up space in your home, ones that you can sell for some extra cash. It’s never been easier to unload unwanted items either online or within your neighborhood. Just make sure you do yourself a favor and do some research first to see how much your unwanted items are worth so you get a good deal.

With a little ingenuity and patience, you can save up more than you thought possible towards your new car. Best of luck!

Getting a Car Loan With Bad Credit

You know you probably need to replace your car, but your credit is not stellar. It is a mistake to assume that your low credit score is a deal breaker when it comes to financing your next vehicle, though. Auto Finance companies like ours handle bad credit car loans all the time, so don’t abandon all hope that you will be approved. All you need to do is prove that you are not as much of a credit risk as your score might indicate.

How Low is Your Credit?

Many people are unaware of their credit score. Maybe you assume that it is terrible because you had problems a few years ago. Before you come to us, get a copy of your credit report. Not only may you be pleasantly surprised at your score, but you might also discover quick ways to raise your score. Be sure to correct any mistakes on your report that you find. If you catch them in time, you can get them corrected before you need the car loan.

How Much Do You Make?

If you have bad credit, you can often offset it with proof that you have a significant amount of disposable income. Credit only shows your payment history. It does not show your present or future. Your pay stubs, however, can give us a fuller picture of your actual ability to honor the terms of the loan.

How Much Can You Put Down?

You can also increase your loan approval chances by making a large down payment. A large down payment can also help you get better terms on the car loan. This lowers the total amount you are asking to borrow, which makes you less of a credit risk to our lending partners.

Your credit history does not have to end your chances of getting the car you want. If you can prove that you can afford the vehicle, your loan application is likely to be approved.

Your Guide to Financing a Used Car

Whether you have a tight budget or you just want to save money on a new set of wheels, there are several reasons why you might opt to buy a used car instead of a new one. Whatever your reasons are, the fact is that you may still need financing. Financing used cars is often more difficult and more expensive than financing new cars, but by using the following tips, you can walk away with a used vehicle loan with fair rates and even better terms.

Be Prepared

Because lending on a used car is inherently riskier for lenders than lending on a new car, the terms and rates on a used vehicle loan are generally short and high. The best way to get a loan that you’re satisfied with is to be prepared. Know what you can afford, know your credit score and have proof of income printed and ready to show. In fact, do the dealership one better and talk to a company like ours that specializes in bad credit car loans.

Fix Your Credit

If you need financing for a used vehicle, check your credit score before you head to the lot. If it’s less than 620 or even 650, take measures to repair it. Though it may take you a few months to do so, it will be well worth it when you can save thousands on interest.

Avoid Bad Credit Dealers

Sure, it may be easy to get a loan from a bad credit dealership, but only because they know that you’re desperate and are willing to pay an arm, a leg and quite possibly your first born for a used car. Buy Here/Pay Here lots generally charge higher-than-market interest rates and sell vehicles for significantly more than what they’re worth. Protect your wallet (and your dignity) and steer clear of these types of sellers.

Financing a used car is not impossible. Be prepared, fix your credit and shop wisely to find the best rates and terms possible.