There are many ways to get a bad credit auto loan if you need a vehicle.
Getting a Bad Credit Auto Loan
Buying a car with bad credit is not impossible. Here are 4 steps you can take to help you get a bad credit auto loan.
Step 1. Prepare Beforehand
Get a handle on your credit situation by ordering your credit report, which you can obtain for free three times a year by requesting a copy from each of the major credit bureaus every 4 months. You should also learn your credit score. Even if your situation leaves a lot to be desired, it's still possible to get a car loan. But it does help to be an informed consumer and know exactly where you stand.
Step 2. Plan a Budget
Knowing what you can afford is an important step in the car loan process. If you don't already have a monthly budget, you need to create one. Figure out a ballpark figure of what you want to spend on your car purchase; remember to factor in the interest rate. Decide how much of a monthly payment you feel comfortable paying. You will also need to have a down payment ready, so start saving up for one if you haven't already. It's very important to not overextend yourself with a big purchase like a vehicle.
Step 3. Shop Around
Getting approved for a bad credit auto loan can be tricky, but not if you know where to turn. First, you should try your local bank or credit union to see if they will give you a loan. If they won't provide financing, you can try a credit card company or even an insurance provider next. If neither of them works out, you can always head to a car dealership to check out their subprime financing options. There are plenty of special-finance lenders for those with damaged credit out there.
Step 4. Head to the Dealership
If you secure pre-qualification from a lender, you'll have an idea of how much you can borrow to narrow down your car choices. Pick out a few reputable dealerships and research their inventories online. Head there in person when you've got an idea of what you can afford. If you get into specifics, make sure you focus on loan terms and not just monthly payments. Hunt for the lowest interest rate and shortest contract length. If you want things to move forward as quickly as possible, call ahead and see what paperwork you should bring along with you.
Having a Friend by Your Side
If you are having a difficult time obtaining financing because of your credit, you need a friend by your side that can help. At Auto Credit Express, we specialize in helping those with damaged credit find financing. When you team up with us, we'll streamline the bad credit auto loan process and make it easier on everybody involved. To get started, all you need to do is fill out our safe and secure online application.