Comments Off on 10 Tips for Getting a Car Loan with Bad Credit
10 Tips for Getting a Car Loan with Bad Credit
According to FICO, the average credit score in the US is 700. Anything over 740 is considered a very good score, while a rating below 669 means you may struggle to secure credit from lenders. A bad rating can cause major problems when trying to get an auto loan for a car through a bank. Even if you’re looking for a used vehicle at a low rate, you may be viewed as too much of a risk. There are solutions, though: take a look below to discover our top 10 tips for getting a car loan with bad credit.
1. Familiarize Yourself With Your Credit Report First things first: know your credit score. Take a look at your credit report and make sure everything’s correct. You are entitled to one free credit report per year from each of the three major credit reporting agencies: [...]
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How to Get an Auto Loan After Bankruptcy
No one wants to declare bankruptcy, but sometimes it’s really the only way out. It does help you deal with large amounts of debt and get your life back on track, but it’s not without its downsides. A bankruptcy will stay on your credit report for seven years or more, depending on what type of bankruptcy you filed for. That will greatly affect your ability to get new loans and lines of credit, including an auto loan.
But if you need a new car and have declared bankruptcy recently, the good news is that it’s not impossible to still get an auto loan. It’s likely going to be more difficult, but with some planning and understanding of how credit works, you can get the car you need. Here are several things you can do to show lenders that you’re recovering financially and can handle the monthly payments.
Pull Your Credit Report
The first thing to do is to look at your credit [...]
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How to Inspect a Used Car for Sale
Buying a used car is a fantastic way to save money without sacrificing quality. The best used car dealerships stock an extensive, diverse range of vehicles catering to drivers of all tastes, lifestyles and budgets.
If you’ve decided to invest in a pre-owned vehicle, you’ve made a smart choice; however, it’s vital to make sure you give prospective purchases just as much consideration as you would a brand new one. While dealerships will take great care to prepare their vehicles for sale and ensure they’re at their best, you should still spend time checking them over with a keen eye.
Below, are some some professional tips to help you inspect a used car for sale properly before you buy. Speak to your dealer about examining vehicles and they’ll be only too happy to assist you.
Check The Engine
As we all know, the engine is an essential component of the car, so it’s vital to get your [...]
If you’re looking for a pre-owned vehicle, you may have heard or seen Buy Here Pay Here (often shortened to BHPH) in reference to independent financing at used car dealerships. The short definition is pretty self-explanatory: you make one stop to both find your car and finance it, instead of needing to deal directly with a bank or finance company.
Understanding how a dealership is able to offer this kind of financing can get a little more complicated. At G&E, we want you to know exactly what type of financing is available and how we’ll work together, whether you opt to finance with a traditional financial institution or start a BHPH plan through us.
Traditional Auto Financing vs. BHPH
The majority of auto dealers have a financial lender portfolio they go through when you are looking to purchase a car from them and will crunch numbers such as your credit score [...]
What’s the Maximum Car Loan I Can Get with Bad Credit?
There are many questions surrounding the process of getting approved for an auto loan with bad credit or challenged credit history. Although some lenders may approve a larger loan so you can finance your dream car, this may not actually be a good move for you to improve your credit score in the long run.
Larger loans for borrowers with low credit scores usually also come with baggage: longer loan terms. This means that you’ll be paying a higher interest rate, and it will take you much longer to pay off a vehicle while its value depreciates. So, what is the maximum car loan you can get with bad credit? And is it a good idea to max out your loan options?
Loan Amounts vs. Credit Scores
To start, make sure you’re working with a financing professional who has experience in finding solutions for [...]
The process of finding your new car and getting a great loan can be a whirlwind experience. Once you drive off the lot and the dust settles a bit, it seems like the most daunting part is just beginning: paying off the loan over the next three to five years. Paying your auto loan is useful in many ways; it helps you finance your car over an extended period of time and can increase your credit score as you prove to be a reliable borrower. But what if there is more you can do with the loan to make it work in your favor, and help you save money in the long run?
Base Your Plans Around What Kind of Interest Applies to Your Loan
Is your loan based on simple interest or compound interest? Most auto loans use simple interest, or interest that is only calculated [...]
What You Should Consider When Refinancing Your Car Loan
In 2017, more than six million Americans were at least three months behind on their auto loan payments. As the payout term for auto financing continues to rise, making sure you are making the right choices in loans and lenders is more important than ever. Refinancing your car loan is one way to improve how your loan works for you and your budget.
Refinancing a loan refers to when you apply and receive a loan to cover your former loan, while using the vehicle itself as collateral. With any loan, you submit some kind of security that informs the bank that you will make your payments. Most loan terms dictate that not meeting your payments for 90 days can result in car repossession. Missed payments and repossession should be avoided at all costs, as the repossession stays on your credit report for seven years.
For many, securing financing for a much-needed car can be a real nightmare. A minority of Americans can walk into an auto showroom and pay for a slick, cutting-edge vehicle in full without breaking a sweat. To them, buying a new car may be as simple as picking up a new television or games console – a nice addition to their life rather than fulfilling an essential transportation need.
For the rest of us, though, investing in a car is a much more complicated, stressful matter. We all have our own reasons for buying a vehicle, whether it’s needing to take the kids to and from school, drive yourself to work, go grocery shopping, or, most likely, a combination of all four. In short, always having access to your own car is a vital need and a convenient way to get from A to B as [...]
Buying a used car is an ideal way to save money and avoid the expensive price tags attached to brand-new models. However, you still need to approach the purchasing process with the same level of consideration and caution you would when investing in a factory-fresh vehicle.
The following 10 best used car buying tips will give you all the help you need to get great value for money from your local dealership.
Understand What You Want
First and foremost, think about the most practical aspects of your ideal used car. What do you need from it, and why?
Do you need to fit three kids in the back, or is it just for yourself?
Do you need the vehicle to cope with certain extra strains, such as hauling a trailer or driving in extreme weathers?
Do you expect to make long journeys on a regular basis, or is [...]
The process of buying a new car can be challenging enough, but it only gets more so when you have a bad credit score.
The vast majority of people need a car to get to work, to drive their kids to school and back, and for all those everyday chores. Finding a loan to cover the price of a new vehicle can be extremely difficult with a bad credit score, as many banks and lenders will see you as a risky investment. Visiting a used car dealer, though, can make things much easier. Certain dealerships will be happy to offer financing to customers with lower credit scores, but what questions should you ask before you can make an informed decision?
Is There a Minimum Credit Score I Need?
This is perhaps the most important question – it enables you to know whether or not you can actually qualify for the dealer’s [...]