Easy Car Financing
Car loans are a cash advance solely for the purpose of buying a vehicle. You make an agreement to repay the amount borrowed, with interest, within a certain date.
Regardless of whether you are buying a new or used vehicle, applying for car loans, or auto refinancing, with us can get you approved for the bad credit car loan that you need regardless of your credit score.
6 Steps in the Car Loan Process
Step 1. Meet the lender’s qualifications.
Step 2. Determine how much money you need to borrow and how much you can afford in monthly payments.
Step 3. Apply for the car loan.
Step 4. Get approved and choose how you want to be advanced.
Step 5. Receive money and purchase the vehicle.
Step 6. Repay the loan as stated per the contract.
Qualifying for Bad Credit Auto Loans
To qualify for a vehicle loan, you must provide:
• Proof of income. (pay stubs, direct deposit slips, or tax returns).
• Driver’s license (must be 18 or older)
• Proof of residence (utility bills, rent receipts, or any legal document with your address on it).
• Five references (in case we lose contact).
• Your permission and agreement to insure the car.
• Credit check application.
We request proof that you earn income regularly to ensure that your income can comfortably afford the auto loan terms that are customized to you. However, if you are a business owner, independent contractor, have a commission-based job, or by one way or another have varying monthly income, we will work with you.
It’s our duty to find a convenient prepayment plan for you. We’ll be sure that it’ll suit your unique financial situation. We’re interested in serving everyone in need of the best auto loan deal.
Understanding FICO Score
A FICO score is a measurement of your risk as a borrower. It is used by financial institutions and lenders to help determine how much they will charge you. The score is affected by the financial decisions you make such as the amount of debt you take on, frequency of opening a line of credit and paying down debt. It does not include small, everyday transactions.
Interest is the fee, usually monthly, that a borrower must pay for borrowing money (lenders issue loans because they are able to make money on the interest included in the loan). Annual percent rate (APR) is the interest rate in annual terms.
A FICO score of 700 and above is considered very low risk to the lender which makes getting a car loan is easy. You’ll enjoy certain privileges and lower rates. For example; with a 700+ FICO score, you get a car loan at an APR as low as 3% and you enjoy a longer loan repayment period. You will also enjoy a lower down payment and have more negotiation power.
A FICO score ranging from 600 to 699 is low risk and considered good credit. You can get a loan period up to 48 months and an APR as low as 10%. Your down payment is still relatively low and you may also enjoy relatively low interest. With a credit score of 600 and above, the least auto loan amount you will get is $20,000.
With a FICO score less than 600, it is considered risky for a lender to do business with you. Traditional lenders require a certain minimum credit score to qualify an applicant. This is where Car Loans of America come to your rescue. We work with people with bad credit and lend to those rejected by other institutions.
Poor Credit Car Loans
We do our best to assist potential borrowers of diverse credit scores and income levels. If you’re a potential car buyer seeking poor credit car loans we ask that you have the following:
- Steady Job – Having a job for at least one year provides lenders with the peace of mind in that the potential borrower has a reliable source of income. Most lenders lean towards borrowers who have been at their current job for around 2-3 years.
- Verifiable Income – Like a steady job, providing your monthly income helps identify if you make enough to follow up with your monthly payment. With no credit, auto loans providing a sufficient income level can replace the need to have credit upon application
- Down Payment – Having a down payment can drastically change your overall outcome in getting approved.
A down payment is the amount of cash or trade equity you’re willing to put upfront when financing a car or automobile. This down payment will affect the overall amount you’ll be paying monthly towards the car.
It minimizes your monthly payments and proves to auto lenders that you’re committed and ready to make the financial commitment that comes with purchasing a vehicle. It’s highly advised to have 30% of the car value for your out-of-pocket cost.
When applying for an auto loan, the amount applied for should include the cost of the car plus other additional costs that come with buying and registering a car such as sales tax and vehicle registration fee. You can check an estimate of a vehicle’s value at www.KelleyBlueBook.com.
Know Someone with Better Credit?
Though we do auto financing with bad credit or no credit, you also have the option of getting a cosigner, a co-borrower or co-applicant to levy your credit score. This person should be creditworthy to improve your chances of being approved swiftly. Your co-signer could be a family member, a friend, or coworker.
The cosigner fulfills or plays the role of helping out with the loan terms if a default occurs, you fail to keep up with the agreement term. The co-borrower or co-applicant also give us – your lender additional assurance that the loan money will be repaid eventually and on schedule.
Getting a car loan is much easier with a cosigner who has a good credit score, as we take the average credit score of the borrowers.
Is Collateral Involved?
Collateral is required to get a loan – but not directly. You still get to drive the vehicle as you normally would for the duration of the term as you pay it off. This is why insurance on the vehicle is essential especially before all debts are paid off.
A lender issues a loan based on your trustworthiness to fully repay the loan on time. If the borrower fails to make regular payments on time, their car becomes subject to becoming repossessed. A repossessed vehicle gets auctioned off to clear the debt that the lender took on. The borrower should not expect any profit from the auction as the vehicles tend to sell for less than other forms of selling such as by ad or at a car lot.
We understand the struggles and difficulties you are facing due to your poor credit history. Our bad credit auto loans process is structured for people with bad credit. If you have difficulty keeping up with your loan payments, contact us immediately so we can explore options. We offer the best car loans to consumers.
How Long is the Loan Term?
The length of a car loan varies dependant on what you work out with the lender based on your current financial situation. There are two types of auto loans: short-term and mid-term. Typically, car loan terms range from 36 to 72 months per lender agreement. The higher the amount you are able to repay each month, the shorter the loan term.
Build Your Credit Up
Making your minimum monthly payments on time may help build your credit over time. Your personal information is secured. Lenders submit a notification of your payments to the relevant credit bureau, and they analyze the data. To build or rebuild your credit in the long run, you must stay in a reasonable amount of debt.
Auto Loan Calculator
Our auto loans calculator is a necessary tool if you wish to get the most suitable car loan based on your budget.
The calculator can help you find out how much of your monthly payment will go to the principal and how much will go to the interest. The principle is the amount of money that you originally borrowed.
An auto loan is a form of debt and you should budget so your lifestyle is minimally impacted by the loan payments and so that you can still contribute to paying off your other debts as well as save money. You can also play around with the loan term to discover when the loan will get paid off. This is especially helpful if you have a big expense coming up such as a vacation or holiday season.
Finding a top auto loan company for your car financing can help you save lots of money.
Car Loan Data includes:
• Loan amount (comprises the cost of the vehicle, car registration, tax, etc).
• Loan term (the duration of the loan term).
• The auto loan rate (expressed as an APR).
By inputting these details into our car loan calculator and comparing numbers, you’ll be better informed on how much you can afford. With this estimate, we can find the right car for you. We get you pre-approved in no time, and then you can purchase a vehicle.
Get Bad Credit Auto Loans with Prior Bankruptcy
We can consider you for car financing even after bankruptcy. Our financers and dealers are very understanding, and we will work together to see that your financial future is way better.
Debt.org recommends that you spply for a secured credit card and gradually pay it off over a 12-month period so that you will rebuild your credit before you can get a car loan. With Car Loans of America, the case is different. Paying back your bad credit auto loan after bankruptcy may help to improve your credit score. Check your credit score free at www.experian.com
First Time Car Buyer Auto Loan
If you’re a first time buyer seeking an auto loan for your first car, Car Loans of America is here to help! We’ve assisted thousands of first-time buyers throughout the U.S. to get their first car. We also have plenty of options for the more experienced drivers seeking to add to their car collection. Same can be said for those who need help gifting to a loved one
Buy Here Pay Here (BHPH)
Buy here pay here dealerships not only sell vehicles but they also act as a financial lender by providing those with bad credit with the dealerships ‘in-house’ financing. Typically, interest rates at buy-here-pay-here dealerships are much higher than other lending alternatives and options. Customers make car payments directly to the dealership and often results in overpaying interest charges due to an over-extended payment plan.
Benefits of Auto Loans
• Easy application and fast auto loan approval
• Flexible car loan payment terms – up to 48 months
• Access to affordable and competitive auto loan APRs (not more than 24 %)
• Access to our comprehensive dealer/partner network to help you find the car that suits you
• Friendly and effective customer service
• No credit limitations for fair or bad credit rating.
• Zero hidden charges
• No bankruptcy limitations
• No mileage or age limit for our used car auto loan
How long does an Online Application take?
The online auto loan application process is extremely simple and straightforward. Our secured system will process your application. This will help determine if you’re pre-qualified for our online car loans within minutes.
You’ll need the checklist of items which includes your driver’s license, proof of income, proof of residency and personal references. It’s a good idea to have a down payment ready when purchasing a car.
If you prefer to talk to a live person, we understand. Alternatively, you can give us a call at (844) 243-4437 and one of our friendly customer service representatives will help you throughout the auto loan application process. Rest assured, when you’re applying for online auto loans through our online car loan applications, by phone, or in person, we’re here to help you!
How It Works
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