As stated be Experian, a credit bureau, about one third of the American population has bad credit. But despite this statistics, it is 100% possible to get a car loan with no credit or even bad credit. Many lenders out there provide car loans for people with bad credit. So no matter the nature of your credit, you can get a car loan without any stress.
How to Get a Car Loan with Bad Credit
When it comes to getting a car loan, there are several finance alternatives. Banks, credit unions and other financial institutes offer loans to people who wish to buy a car. However, terms and policies differ between these lenders.
Plus, there is the risk of winding up with a high-interest loan that you may not be able to afford. The best way to get a car loan with bad credit is to approach a reliable bad credit car loan company like Car Loans of America for assistance.
Pre Approval Process
When you approach a bad credit auto loan company, you will immediately receive a preapproval, which gives you the authority to shop for your car like a cash buyer, as well as the freedom and negotiating power to get the best car deal at the dealership.
Read more about pre approval from https://www.investopedia.com/articles/basics/07/prequalified-approved.asp.
Car Loan Companies Who Accept Bad Credit
To get a car loan even with bad credit, you approach a trusted bad credit car loan company and apply. However, before you apply for a bad credit auto loan, you need to review your credit history to check for possible errors that may affect your chances of getting the best deal and auto loan rate.
After applying and getting the car loan, the next thing is to begin to map out plans to pay off the loan. This means working with your budget to reach an amount that you can easily afford.
Auto Loan Calculator
With our auto loan calculator, you can reach an estimate of how much loan you can conveniently pay off, as well as a comfortable monthly payment amount that will not strain your budget. The car loan calculator will also give you an idea of the interest rate, loan duration, and overall auto loan balance – including the interest charges. You can vary these parameters to reach a convenient payment plan that will suit you.
You’ll want to know what you’re paying out of pocket in terms of monthly expenses. It’s advised you do what you can to improve your credit score and ensure you can actually afford the loan you seek. Otherwise, you could end up in a scenario where you’re upside down on the auto loan or even default.
Apply for a Car Loans with Bad Credit Through Car Loans of America
Irrespective of your credit status, applying for a car loan with bad credit or auto refinance should not be stressful or complicated. Car Loans of America offers affordable car loans to people of all credit types at fair and competitive interest rates. The Car Loans of America auto loan process? It’s simple and streamlined, giving you the best bad credit car loan anytime!
Our online auto loan application form is secure, simplified, and short. You will be able to complete the online application within a few minutes, and receive an instant decision from us.
Once approved, you will get a preapproval that satisfies your car-purchase needs. This preapproval comes with no obligation and is valid for 30 days. Getting a car loan online has never been easier!
In a situation where your monthly income is not enough to support the monthly loan payment, and you have a poor credit history, you can select the cosigner option to include a creditworthy friend, colleague or family member. This cosigner stands as our guarantee of getting back our money in case you miss a payment, or whenever you fail to pay up the loan.
Read more about loans from https://www.nerdwallet.com/blog/loans/what-is-a-loan/.
Items needed to get a car loan with bad credit
In order to obtain a car loan, especially with bad credit, it’s highly advised you have the correct documentation on you prior to application. In doing so, you’ll speed up the auto loan application process and ensure to lenders that you’re prepared to take the steps necessary to get the loan.
Here is a brief list of the items you’ll need in order to obtain a car loan with bad credit in your area:
- Valid Identification: Preferably a driver’s license as you’ll need one to drive a car off the lot!
- Proof of Income: This can be a pay stub. It shows the potential auto lender that you have the means to pay back the bad credit auto loan provided.
- Documents of Residency: A utility bill typically is good enough to meet this criteria of documentation.
- Credit Score: Most, if not all, lenders will require a run on your credit history. That’s why we recommend you know what your score is prior to application. You can save yourself a hard credit pull by using resources like Credit Karma to identify where you’re at with credit. Working on your score before you apply can put you in a better position to receive a car loan with poor credit. With greater approval odds and a better score, you’ll have plenty of options auto loan to choose from!
Your Personal Finances
Understanding your finances and how much you truly can afford will put you in a better position all around. In doing so, you have the potential to save money, receive more options, broaden your approval odds and more cash via loan to purchase the car of your dreams!
Where to Buy a Car and Get a Car Loan with Bad Credit
Car Loans of America works with over 14,000 selected dealerships nationwide. And with the dealer locator feature on our website, you can easily find a dealership close to you that offers the quality of car you desire.
From our Car Loans San Diego, Los Angeles, New York & Florida. We’re located all throughout the US to make it easier for you to get the car loan you need!
You approach the dealership with the printed copy of your pre-approval. And it is with this preapproval that you shop for your dream ride.
Our auto dealers have a wide collection of cars and vehicles that meet our standard of quality, as well as your specific cash requirements!
Once you have made your choice, you will be required to sign the agreement to finalize the car-buying process. Our customer service reps and dealers will work you through the entire process.