Bad credit can happen to anyone, even the most careful budgeter. It has been said that it takes a long time to build good credit, but just one mistake can cause your credit rating to drop. Maybe you forgot to send in a credit card bill, causing the account to go 30 days or more late. Maybe you lost your job and it took some time to find a new one. Unexpected medical bills or household repairs can wreak havoc on a budget as well. Unfortunately, bad credit affects your life significantly. It can keep you from renting an apartment, getting reasonable car insurance or purchase a car. The inability to purchase a car can be devastating, especially if you need to get back and forth to work. Being unable to work can damage your finances even further. There is hope, however. Bad credit car financing is available that can get you behind the wheel of a car and back on your feet financially in no time.
Getting a Car Loan
The first step in getting bad credit car financing is to complete an application online to be pre-approved before you visit a dealership. You will need to provide personal identifying information such as your home address, your social insurance number, date of birth and the name of your employer as well as how long you have been employed. You will also need to know your monthly mortgage or rent payment as well as the amount of other debt you must pay each month. You may be asked to provide copies of your photo identification and recent paycheck stubs as well. After you have applied online, a representative may contact you to discuss any information in the application. Once your application is approved, you can shop for a vehicle knowing just how much vehicle you can afford.
Tips for Bad Credit Car Financing Approval
There are some tips for increasing your chance of approval for bad credit car financing. If you can afford a down payment, even if it is small, it can help with the approval process. Be honest with the loan officer regarding any issues on your credit report. Providing them with explanations as to why a certain payment was late or what circumstances caused your credit to be damaged allows them to look at your circumstances on an individual basis, making it more likely they will approve the loan. Remember that bad credit loans often have higher interest rates than other types of auto financing. Be sure that you can afford the payment before you purchase the vehicle to avoid damaging your credit even further.
Improve Your Credit
One of the best benefits of bad credit loans is that they can help you improve your credit. When you make regular, on-time payments on the loan, your credit rating can improve. The important thing to remember is that you must make the payments on time each month in order to improve your credit rating as any late payments may negatively impact your score, dropping it even further. Once your loan is paid in full, you may see a dramatic increase in your credit score, making it easier for you to obtain a loan in the future at a lower interest rate.
There is hope if you are dealing with poor credit or if you have not built a good credit history yet. Bad credit car financing is available even if you have been told no by other companies. Contact us today or complete an application online to learn more about the products we have available when your credit is not as good as it could be.