Do you fear that your bad credit rating is holding you back from getting a car? Believe it or not, it’s not impossible, and here is how you can do it.
It can be a terrible feeling passing that car dealership every day knowing that the car you would like to buy is out of reach. Having bad credit is like dragging a large boulder behind you; no matter what you do, it can follow you around wherever you go. So, the question is, what can you do to overcome this predicament?
Previous G&E Motors Blog posts have taken you through getting a fair deal for your trade-in, and finding a reasonably priced reliable used car or truck, but how can you get the financing to buy that vehicle if your credit score is not good? Here are some tips for not letting a bad credit rating, or having little or no credit history, keep you from getting that vehicle.
Auto Loan Direct Lenders
This may not be the only approach to gaining auto financing with bad credit, but there are Direct Auto Loan Lenders who offer direct payment auto loans. You will have to go through an application process to prove that your bad credit is temporary and you have sufficient income to handle car payments. Much like any other application process, the details need to fall in line with their expectations before they approve your auto loan. So, make sure you understand all the requirements before applying for a loan online with one of the Direct Lenders.
Guaranteed Auto Financing Car Dealers
Guaranteed Auto Financing Car Dealers often refer to used cars dealers that offer direct payments to the dealership (Buy Here – Pay Here) rather than going through a financial institution for a car loan. This can be a very good option for those who are unable to get approved by a bank or loan company. The only downside might be the interest rate charged by the dealer. It may very well a bit higher than a loan company might charge, but it may be worth paying a few extra dollars a month to be able to purchase a vehicle. Like any other loan, just make sure you fully understand the loan agreement. And, of course, make sure that the payments are manageable for you in your current financial state. This is a great option for finding auto financing with bad credit.
Zero Credit Auto Loans
These financial agencies provide auto loans to people with no credit history, so long as they have the financial ability to make the monthly payments, and have the money for a reasonable down payment. Zero Credit Auto Loans are a fantastic way to put you inside a car you while helping you establish a good credit rating.
After hearing about these three options, there is one other way you can buy a car with bad credit or with little or no credit history at all?
If you have the time and financial ability to save up enough to pay for a car with cash, this can be the ideal way to eliminate having to find financing with bad credit. In fact, buying with cash means your car purchase will not lower your credit score even more by adding to your current debt. And just owning a car outright could possibly improve your credit rating. So, if you can wait, and are able to earn some extra cash that you can save, it could be worth delaying your purchase for a while.
Now you know some helpful tips for auto financing with bad credit. But if you have any more questions about auto financing with bad credit, or anything else about buying a car, feel free to give us a call at 267-560-5519. G&E Motors is ready to help get you through this together!