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How to Get A Car Loan With Bad Credit

How to Get A Car Loan With Bad Credit

Due to poor credit ratings, a lot of people have their car loan applications turned down. This can often be attributed to their poor preparation for the application process or the poor timing of their application. Presently, owing to the economic recession, people with low FICO scores can often obtain credit services from money lenders.

Financial institutions sell loan products with the aim of making interest. It has, however, become necessary for these institutions to switch to less demanding requirements for granting loans, because only a fraction of clients seeking loans today can fulfill the previous, more stringent demands. Read on to find helpful tips about how to access an auto loan even with a bad credit rating.

Qualifying for an Auto Loan with Poor Credit

A bad credit car loan will allow you to get the vehicle you really want – new or used – without having to pay too much over time. Possible reasons that your bad credit auto loan application may be rejected include:

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  • Inadequate or incorrect data
  • Incorrect submission of forms
  • Not filing credit reports, bank statements and employment info

However, minimum earnings of $2,000 every month are necessary for any car finance loan. Carefully select a car insurance option that befits you, since insurance is added to the car purchase charges. It is advisable to do research to ensure you prepare and submit your loan application correctly.

Knowing your credit score makes it easier to understand what you’ll need to get a car loan with bad credit. It is just like getting a normal loan, but you will be required to pay a higher interest rate and make a higher down payment. Interest rates for bad credit car loans range from 5% to 26% and normally vary based on your credit score. The loan is paid back after 2 to 5 years.

Based on the severity of your bad credit, your required down payment can vary from 20%-50%.  Normally, the down payment affords borrowers the chance to negotiate better interest rates. It is important that a borrower is informed enough to avoid paying extra for bad credit loans. Be certain that you can afford the cost of the car plus the dealer’s profit, as this is what you will be paying for.

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Be wary of lenders that make false assertions. Certain lenders can’t afford to take the risk of lending to those with bad credit. Carefully search for and compare all the available bank credit loan options before opting in.  Pay attention to the terms and interest rate proposed by lenders. The fact that you’ve qualified for a bank credit loan doesn’t readily mean you should accept it. If you feel you can’t repay the loan, then don’t borrow until you are sure you can pay it back.

Unique Auto Finance Services for Individuals With a Poor Credit History

Having a bad credit history doesn’t necessarily make you a bad person; it may only be the evidence of hard times. Loan lenders now understand this, and this has led to the introduction of bad credit car loans. Now a bad credit history shouldn’t prevent you from acquiring that dream car.

To obtain a loan from conventional loan providers like banks, credit lending institutions, and some car manufacturers, you will require awesome credit ratings and a high FICO score. Since a lot of people cannot meet these conditions, they cannot access these loans.

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Now, experienced lenders have taken advantage of this opportunity and are now providing loans for the vast majority of individuals with poor credit rating. Companies can make substantial interest from these loans. These days, a lot of financial institutions have embarked on the business of giving loans to individuals with poor credit ratings.

The internet is replete with information on institutes that provide bad credit auto financing. Their interest rates, turnaround times, loan options, and loan tenures are usually included on these sites. Numerous sites also have online loan calculators for the easy computing of loan tenures and other information; you can use these to find a repayment plan that works for you.

To make a good car loan deal with a loan provider, you need sound negotiation skills. Use an expert negotiator if you are in doubt of your negotiation skills. Besides getting you cheaper deals, these experts will work to make sure that your auto loan application is duly prepared and organized.

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Finding a dealer

You need not worry even if you have experienced severe financial issues in the past. With “no credit check” car loans and adequate planning, you can overcome these issues and get back on your feet. To find out which car dealers may be willing to finance people with iffy credit, pay attention to radio commercials or billboards from dealerships that say things such as “Your job is your credit!” or “Bad credit? No Problem!” These are good places to start.

There are numerous “no credit check” car loan dealers and manufacturers with different modes of operation. Research and review various companies, then choose the best deal after careful analysis. Some may demand higher interest rates; others require a larger sum as down payment. You should opt for a company that allows a fair amount of down payment as well as low interest rates.

Even with a bad credit history, “no credit check” car loans deliver an interesting alternative that can finally put you behind the wheel. With a good plan, you will certainly find a bad credit car loan to finance that dream car.

Featured photo credit: Pierre Money Mart via pierremoneymartblog.com

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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