How to Get Bad Credit Auto Financing
Cars are necessities, however they are one of the most expensive necessities that we can purchase. Most people purchase a car through auto financing. Auto financing allows you to pay a car over a course of years. Auto financing can be as short as one year, or it can be as long as five to seven years, depending on the lender.
If you have bad credit, you know how hard it can be to get financing for any product that you may need. Fortunately, there are some opportunities for those who have bad credit at the time being to get financing in order to secure a vehicle.
Stop by the Dealership
Many times, people with bad credit will shy away from going to a dealership to get a vehicle. Most people with bad credit will automatically assume that they are unable to get a vehicle from a dealership. This is often not the case. Some dealerships have many different avenues to get you financed for a car. Dealerships often have relationships with banks and lenders who can accept less than perfect credit. For dealerships, your income will make a big difference, as well as your time on the job. Sometimes just talking to the financing department can get you an approval.
Bad Credit Lenders
One sure fire way to be a good candidate for auto financing is through a bad credit lender. Finance places that specialize in offering loans to individuals with bad credit are more likely to be less concerned with a bad credit history. First, you want to find out the minimums standards for the auto financing company. This includes income, credit rating, and auto price. If you meet the standards, or if there are no minimum standards, you should apply for the loans.
Be aware of the interest rate of your loan. Many bad credit auto lenders will charge a larger interest rate than your standard loan. Make sure that your monthly payment can be easily afforded through your budget. Do not go over a monthly payment that you will be able to afford each month.
Get a Bad Credit Personal Loan
Bad credit personal loans can be taken out to purchase a car for cash. Sometimes, your bank, or especially your personal credit union may be willing to give you a lower level personal loan. You can take the money for the personal loan in order to pay cash for the car.
If you take out a personal loan, you may need collateral to back up the loan. If you have jewelry or anything that is worth cash, you can put this up as collateral so that your car will not be repossessed in the event that you miss payments on your loan.
Even with bad credit, you have a number of options for getting lending for an automobile. If you are in need of a car, try the three above methods to get the car of your dreams for a price that you are sure you can afford.