Getting a Car Loan Even with Bad Credit

For many, securing financing for a much-needed car can be a real nightmare. A minority of Americans can walk into an auto showroom and pay for a slick, cutting-edge vehicle in full without breaking a sweat. To them, buying a new car may be as simple as picking up a new television or games console – a nice addition to their life rather than fulfilling an essential transportation need.

For the rest of us, though, investing in a car is a much more complicated, stressful matter. We all have our own reasons for buying a vehicle, whether it’s needing to take the kids to and from school, drive yourself to work, go grocery shopping, or, most likely, a combination of all four. In short, always having access to your own car is a vital need and a convenient way to get from A to B as your lifestyle and personal responsibilities demand. It’s that simple. Still, what if you desperately need to replace your car but just cannot scrape the necessary money together? Worse still, what if you have a bad credit score that puts you in a category of a potential high-risk investment to many prospective lenders?

Are You Considered A High-Risk?

The odds are against you when you have a bad credit score. Banks and other lenders will be wary of extending a car loan to you in the belief that you will be unable to make your payments on time and in full. While that may sound harsh, from a business perspective it does make sense: they cannot afford to give out money without a reasonable assurance that they’ll get it back

However, this is an unfair system, essentially painting everyone with a bad credit score with the same brush. Banks may take a quick look at your credit history, see missed payments or maxed-out credit cards, and, within minutes, decide they aren’t willing to finance your car purchase. Having one door after another slammed in your face is devastating, especially when you have no car and find getting by without one is very difficult. No vehicle at your disposal can be especially disastrous for your work and personal commitments alike, especially if you live in an area with little or no public transportation,

Bad credit scores can be a real burden, and leave you feeling like something of an untouchable investment – but there is a way to secure that all-important car loan even with a low credit rating. A dealership that provides financing assistance is an ideal option. G&E Motors provides instant approval to every driver, regardless of your credit history or score, catering to your exact needs and budget. This is a much more personalized quality of service compared to banks or other financial lenders, and you will not be approved for a loan higher than you can afford to repay.

Understanding Bad Credit

Bad credit can be so unfairly damaging to your prospect as a borrower because it emphasizes past struggles to keep up with payments. Your credit history is gathered by several different credit bureaus and put together into a credit report. Defaulting on loans, missing payment deadlines, and generally appearing to have difficulty avoiding debt can all be revealed by a credit report, putting off banks and other lenders before they have even met you.

You may have been involved with collection agents or filed bankruptcy, two things which will make a serious negative impact on your credit score. Of course, these may just happen to you once, and you might have gone from financial weakness to financial strength since then, but those incidences can still mark you as a risk. Your credit score itself is based on the information in your report, and this is used to summarize your entire suitability as a borrower at a glance. Credit scores tend to fall within a range of 300 to 850, with anything below 620 generally viewed negatively.

You will probably have a fair idea how bad your credit history is likely to be without even checking your score, especially if you’ve been denied credit cards or your interest rates have climbed higher and higher. It’s vital to stay on top of your credit score: you can check it out by taking advantage of free credit reports. Every U.S. citizen is entitled to one free credit report from each of the three main credit bureaus on an annual basis. You can contact Experian, Equifax, and TransUnion to request your report, though the information contained within each may vary somewhat as they are based on information from different sources. 

Rebuilding Your Credit

Your credit rating can be improved over time when you make regular payments on your car loan. You will prove that you are able to keep up with the monthly charges required of you and demonstrate that you are a responsible borrower who can be relied on. This makes you more of an appealing candidate for other loans in the future, which can help you to secure mortgages and even loans for more expensive vehicles.

It’s essential to consider your income, your existing monthly expenses, and what other financial responsibilities you may develop during the term of your car loan. You want to get the best vehicle you can possibly afford, but you also don’t want to go beyond your means. Building your credit score and earning a strong report takes time, so don’t panic and believe you have to do it all overnight. Your car loan will enable you to get back on the road in the ideal vehicle for your needs, taking a weight off your mind and making it easier to focus on paying off those other financial responsibilities.

At G&E Motors, our dedicated team has helped drivers in all manner of financial situations and with all levels of credit reports. No matter how low your credit score is, we’ll help you get the right financing and vehicle that meet your budget and needs. We will make sure you get the vehicle that best fits your needs, and receive the fairest, most realistic loan for your financial capabilities.

You can check our extensive inventory of quality pre-owned vehicles on line, and even start the financing process from home by completing our on-line credit application. Of course, you can always call us at 267-560-5519 or stop in anytime – we are conveniently located at 451 E. Lincoln Highway in Langhorne, PA. Our staff is always available to help you find the perfect car or truck that matches your needs and budget.