How You Can Qualify For A Bad & Poor Credit - Car Loans
Getting an bad or poor credit car loan isn't
as hard as you might believe. If you current have bad credit, a bad credit
car loan is a secured loan, which makes it a little easier. With a car loan,
the lender will hold on to the title to the car until you have paid the loan
in full, so they at least can repossess the car if you don't pay the terms
of your loan as agreed. Hopefully, that won't be the case, and you can use
the auto loan to help rebuild a good credit history.
This does not mean that easy credit is available for someone with bad
credit. A lender will still want to determine you can pay. They will check
to make sure you're employed, and also that you can pay your current debts
and the new loan out of your monthly salary. Expect to demonstrate at least
three or four months of employment with your current employer, and some
employment history before that. A lender will calculate the percentage of
your pay that is already going to pay off debt - and as a guideline they
will look to see if your debt is under 30% of your monthly paycheck. Every
lender has their own, in-house guidelines to follow. Remember that even
though a lender has the car as security for a bad credit car loan, they are
not in the car business, and they would rather not repossess your car if at
all possible!
If your situation is fairly stable, and you have regular employment, and are
able to pay the debt you have now, then even if your credit is less than
perfect, you will probably qualify for a bad credit car loan. Again, because
of the security, you may even qualify if you have foreclosure, bankruptcy,
or other serious credit events on your credit report.
When you're working to rebuild some good
credit, getting an auto loan for people with bad credit can be just the
ticket. You'll need a working vehicle to keep your job of course, and if you
need a better car, getting a loan can help. You will have to make sure you
pay the loan on time each month to use the loan as a way to establish good
credit history. But remember, even if you can afford the loan, it's probably
better not to buy a car if you don't need it, as it adds new debt back to
your credit report. If you don't need a car at all, use the cash you would
have put toward a car loan and pay off existing debt instead. Your credit
history will be that much better when it is time to buy a car.
But if you really do need a car, and you are stuck with a poor credit
history, don't worry. Several lenders in the marketplace realize that many
people with bad credit need cars. They may charge you a higher interest rate
on the loan, and perhaps an application fee. You'll also need money down on
the loan. One loan term to watch out for is a prepayment penalty, which
means you'll pay a hefty fee if you pay off the car loan early - which could
happen if you need to resell the car. Avoid prepayment penalties whenever
possible.
It's also best to check with your bank and other lenders before turning to
the car dealership for a loan. Most car dealers do not offer bad credit car
loans but AVE affiliated finance companies that may offer deals for bad
credit. Use them as a last resort.
And a word about car values: Remember that a new car loses 60% of its value
within 4 years! Plan to buy a used car rather than new, so you don't wind up
owing more than the car is worth, and have a chance to pay off the loan
quickly.
Getting into a new car with a bad credit car loan is certainly possible.
Just use caution when taking on new debt, and make sure you pay if off on
time to rebuild your credit score.
Just apply here, We provide
instant approval and Money will be deposited in your bank a/c. on the very
same day...
Apply For Instant Loans - By
Clicking The below banners & Links
