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Best place to get a personal loan with bad credit
Best Bad Credit Car Loans for 2019
Unfortunately, a vehicle is also one of the most expensive purchases you’re likely to make, forcing many people to take out an auto loan rather than saving up cash to pay upfront. So what do you do if you have bad credit and need a new car?
Table of Contents
Best Bad Credit Car Loans
Auto Credit Express
Expect to be asked several questions about your employment situation, like how many hours a week you work, how much overtime you get, and other specifics. But don’t worry, you won’t be bogged down with endless input fields; in fact, the application only takes three minutes to complete online.
Because the website works with a variety of lenders, you may find lending guidelines less restrictive. For example, there are no set rules on whether or not you’ll need a down payment, or how much you can borrow.
Instead, each lender has its own policies when analyzing your credit history, income, request amount, down payment, and loan term. You’ll also find a variety of funding options, including ACH, check, and bank deposit.
Another great perk is that you can review all the offers for which you qualify without any obligation to accept any of them. Still, MyAutoLoan puts each application through a patented analysis process to make sure you’re matched with relevant loans.
Their auto loan program allows you to fill out a brief application form, then connects you with offers from dealers within 24 hours. You can then shop for both new and used cars through the dealer with a customized financing plan already in place.
CarsDirect caters to borrowers with all types of credit. They work with people with FICO scores below 640 on a regular basis, as well as those with recent bankruptcies. Some lender partners also offer the option to get an auto loan with a co-signer. That allows you to take advantage of better rates and terms on your loan.
Other Lenders to Consider
Car.Loan.com partners specifically with a dealer network that concentrates on special finance. These dealerships utilize in-house financing, which can allow them to focus more on an applicant’s income rather than their credit.
Plus, the process helps you know exactly where you should be shopping for a car. It combines the convenience of online financing with an in-person vehicle search. It takes just three minutes to fill out a request form through Car.Loan.com. From there, you’ll typically be receiving a response within 24 hours, meaning you could proactively begin your car hunt within just a day or two.
Blue Sky Auto Finance
If your score is below a 652, you’ll need to provide proof of income equalling a minimum of $1,800 per month. However, they do take applicants who don’t have any credit at all or have had a bankruptcy in the past.
You can purchase either a new or used car with Road Loans, and can even use them to refinance an existing auto loan. They accept any credit type and you receive an application decision within minutes.
It’s also a good option to consider if you want to buy a car from a private party rather than a dealership. You’ll need a vehicle inspection conducted and the car must be no more than 12 years old with 100,000 miles or less for private party loans.
Does having bad credit affect your car loan?
If you have a poor credit score, it’s unlikely that you’ll qualify for a high dollar loan amount. Your car search will be limited to the loan amount you’ve qualified for, whether you think you can afford it or not.
Can I get a bad credit car loan with no money down?
You’ll most likely need a down payment. While some bad credit lenders specialize in loans with a small or zero down payment, many will require one. And if you want to buy a more expensive car than the loan you qualify for allows, you’ll need to make up the difference with more money down.
As with any financial decision, it’s important to strike a balance between affording your monthly payments and finding a car that meets all of your requirements. If you end up buying something too cheap, you could end up spending a ton of money at the mechanic every month or two. Take a look at your financial situation holistically to weigh the pros and cons of the amount of car you can reasonably afford.
How can you get an auto loan with bad credit?
Even with poor credit, you can still follow a few tips to get the best deal on your auto loan. Just as with any other major purchase or investment, it helps to take your time with the entire process from start to finish.
Review Your Credit Report
Before you start car shopping, access a free copy of your credit report and review it for accuracy. This document has a huge impact on your ability to borrow money for a vehicle; after all, the information listed contributes directly to your credit score.
Create a Budget Based on Your Current Finances
Once you’ve reviewed your credit history, it’s time to figure out your budget. You need to look at this from two different perspectives: the total amount you want to pay for a car and the total monthly payment you want to pay each month. The two are related, but you should come to each amount separately.
For instance, both the amount of money you pay for a car that’s financed and your interest rate contribute to your monthly payment amount. But even if you can afford a certain amount for a car, that maximum doesn’t mean it’s the right amount for every single vehicle.
Make sure the sales price accurately reflects the condition and mileage of the specific car you’re considering. Find your target monthly budget by playing around with some auto loan calculators and inputting different interest rates and price points.
Negotiate the Purchase Price
When you have bad credit, you may not be able to change your interest rate, but you can negotiate the purchase price of the vehicle. The actual sales price doesn’t have anything at all to do with your credit.
In fact, your car salesperson shouldn’t know anything about your credit history. To help lower your monthly payment, especially if you know you’re getting a high rate, try a few simple negotiation tactics.
First, try shopping at the end of the month when the sales team is trying to hit target numbers. Also, try to go during off hours, like on a weekday morning.
When there are less potential buyers milling about the showroom, the sales staff is much more likely to make an effort to seal the deal with you. You can also shop around several dealerships to compare prices and use competitors as leverage for a better deal.
Avoid Unnecessary Upgrades
An easy way for them to do this is through upgrades, even when you’ve successfully negotiated a better sales price.
Whether it’s a custom paint color, seat warmers, a leather interior, or even a warranty plan, it’s easy to get sucked into tacking on a few thousand dollars here and there. And that can quickly derail your plans to stay on budget for your monthly car payment.
Carefully Review Your Loan Agreement
Shortly afterward, you’re notified that your financing actually fell through and you’re required to sign a contract at a higher APR. Get everything finalized and confirmed before you take the car off the lot.
Use Your Car Loan to Repair Your Credit
Of course, late payments will hurt your credit score, in addition to accruing you expensive fees. But as long as you stay on top of your payments you can really benefit from an improved score. In fact, you may even decide to refinance your car for a better interest rate.