Getting a Car Loan with Bad Credit
Living in an area with unreliable transportation can be a real hassle. However, with a car, life can be a whole lot easier. But how many people can afford one? Although cars improve efficiency, they can be quite expensive, especially if you have no cash and a bad credit.
There are lenders who can extend a car loan even if you have a bad credit. In this article, you’ll find the best auto loans for bad credit as well as useful information on how to get the best car loan with a bad credit.
Which Companies Lend to People With Bad Credit?
Capital One Auto-finance
This lender offers one of the best services. Apart from either financing or refinancing your car loan, they also offer a find a dealer service within the website. All you have to do is enter your location and a bunch of dealers will pop up.
You can also find cars that are within your budget again on their website. All this is possible thanks to a unique tool called the Auto Navigator that takes you through the whole process.
You can personalize your terms to fit your budget meaning that you can work out a repayment plan that will not affect you in a negative way.
On average, Capital One Auto-finance has received 4.8/5.0 customer rating.
CarFinance.com extends loans to people with poor credit scores and you can find used and new cars. They also offer refinancing and purchase loan options for any type of credit.
Their loan application is quick, easy and secure and for new customers, you can get a loan decision in around 30 minutes after sending your online application.There are no application fees and their term of a loan can go as long as 60 months with an APR of as low as 5.75%.
At SpringboardAuto, you can get refinancing auto loans, private party loans as well as dealer purchase loans. It also offers auto loans starting from as low as $7,500* without compromising your credit score. All you have to do is send in your online application that takes less than 2 minutes.
This lender also offers personalized loan terms with competitive rates. This means that you can work out a repayment plan that works best for you. In addition, SpringboardAuto will be there every step of the way, including when you close that deal with the dealer.
This website offers a platform where lenders and potential customers can meet for the purposes of car loan financing and refinancing.
Their website connects you to dealers that can finance your loan with no restrictions in terms of credit type. After you get pre-approved, you can start shopping around with the pre-approval. What Car.Loan.com does is to connect you with the lenders they partner with to finance your car loan. These lenders pay attention to your income rather than your credit.
In addition, the site enables you to find a convenient location where you could purchase your car. You will only need less than 5 minutes to fill out your online application and you can get a response in 24 hours.
This is another fantastic auto loan lender that will refinance an existing car loan. You can also buy used or new cars, thanks to Roadloans.com. Furthermore, once you send in your application, you can get a response in minutes regardless of your credit type.
You will also have to consider whether you will be buying a car from a dealer or a private party. For that, you’ll need to carry out an inspection on the car to ensure that is in good condition and not have exceeded 100,000 miles and less than 12 years old.
Steps To Getting The Best Auto Loan With Bad Credit
Below are a few steps you can take to get the best bargain on your car loan.
- Review your credit report
This is critical for anyone wishing to purchase a car. You need to scrutinize your credit report because this document is important when borrowing money to buy a car. The information will affect your credit score either in a positive or negative way.
While everything on the credit report may be accurate, various lenders may employ deceitful tactics to levy higher interest rates on you. They could level false allegations based on the report and for that, you need to know everything included in your report to avoid such blind spots.
- Craft a Budget Based on your Financial Muscle
After you’ve checked your credit report, your next move will be crafting a budget. The budget can be split into two. The first is the amount you are willing to fork out for the car. The second is the monthly payments or installments you will pay.
The amount you intend on paying for the car and interest rates contribute to your monthly installments. Nevertheless, you can try the following:
- Get A Bargain off the Price
This step is inevitable, but you need to know how to go about it. What you have to keep in mind that once you step into that car yard or showroom, your credit has no relationship whatsoever with the actual sales price. Don’t disclose your credit history to the staff just yet.
Go shopping during the slow working hours like a Monday morning when the traffic is much less. The staff there will be all yours and they will be trying to close the deal at the earliest opportunity.
- Review your Loan Agreement
Once you have come to an agreement with the seller, you need to counter-check the details of the agreement.
The details range from the interest rate, sales price, model of the car to the various fees involved. All this information has to be accurate to avoid a fall-through in your financing. This could lead to signing a new contract with higher interest rates.
- Repair Your Loan with the Car Loan
This is the trickiest part. You’ll have installments to clear every month and the best part is that this offers you an opportunity to repair your bad credit by re-paying on time.
On the other hand, late payments or failure to pay at all will damage your credit score further. You will also attract penalties that will put a dent in your pocket.
- Get A Bargain off the Price
- Best Auto-loans for Bad Credit
With the above tips, it’s about time to find that auto lender with the best auto loan rates.
A poor credit score can hamper your efforts when it comes to finding a car loan. However, this doesn’t have to dampen your mood because there are many auto lenders ready to help you out regardless of your credit score.