January 2021

Don’t let your poor credit score hold you from owning your dream car. Yes, there will be challenges in obtaining an auto loan if you have bad credit. However, it’s possible to have your car loan approved if you play your cards well. Outlined here are tips on how to acquire bad credit car loans. First, ensure you have a clear knowledge of your current credit score, possibly six months before shopping for possible lenders. Remember, this is the score that will be used by every lender to determine your creditworthiness. A higher credit score translates to higher chances of securing a good loan. Obtain this information at the earliest to help correct any discrepancies in your score. Work on improving your credit score months before applying for your auto loans. Clear any outstanding loans or credit card balances. You may also consider debt consolidation to help boost your creditworthiness. If there is no time to boost your credit score, then have considerable savings for your auto down payment. This is the best approach to have a lender approve your application if your credit score is bad. Remember, lenders do not endorse loans 100% of the car value on sale. Thus, having a huge down payment will improve your eligibility for an auto loan regardless of having a poor credit score. While automobile loans do not require borrowers to have guarantors, taking one with you may help if your credit scores are bad. However, the co-signer or guarantor must have a good credit score. That will improve the possibility of your loan sanction and see you pay low-interest rates. Such an individual will be held responsible in the event you fail to repay your loan. Don’t be caught off guard with an approved loan and no clue what type of car will fall within your budget. Remember, a poor credit score reduces your eligibility for higher loans. Thus, start researching for your dream auto and negotiate with various dealers for a good bargain. It will help determine how much loan you need; an amount that your lender will approve regardless of your bad credit score. Consider dealer financing. While this option will see you pay higher interest rates, the eligibility criteria are favorable as opposed to that of banks. Besides, the process is much faster, and you can negotiate favorable terms even with bad credit. Ready to secure bad credit car loans with favorable interest rates? You’re in the right place. Let’s talk now.

The allure of new cars cannot be denied. Every year, manufacturers parade the latest models with cutting edge technologies, handsome profiles, and powerful engines. We imagine how much fun it would be to drive them and be seen in them. However, there is the not so trivial matter of cost to contend with. Cars are worth a large amount of cash, from tens of thousands to hundreds of thousands of dollars. Anyone who is planning to buy their first car or their replacement for the old one must study car finance before getting a loan. Loan Payments are Not the Only Expenses One of the most basic concepts to remember is that the expenses don’t end with the monthly car finance payments. Once you have brought the unit home, costs will start to pile up. You will need to have it registered and tested every couple of years. You will have to pay for car insurance. You will need fuel to make the car run with the price per gallon fluctuating all the time. The car will need regular maintenance and the occasional repairs. You might be persuaded to make some upgrades and modifications to suit your needs. Be sure to make space in your budget for all of these. Cars Depreciate Rapidly in the First Few Years Cars are machines with a finite service life. Some last longer than others but all of them depreciate over time. There is a massive difference between the prices of brand new units and used ones. Part of that is due to the aversion of buyers to uncertainty. They are suspicious about the condition of used options so they make the safe bet with new models. People are also excited for the latest designs and technologies so they are willing to pay a premium for these features. Decide whether you are going for a new or used car. The latter may be a good option if you know your way around vehicles. Get Low Interest with Short Loan Terms If you are buying a used car, then the cost may be low enough that you can get it with cash. If new, then you will probably need a loan to acquire it. Don’t just settle for the offer of the dealership. Compare the interest rates among different lending institutions and go for the lowest one. You can further reduce this rate by opting for a short term of one to two years to pay off everything.