Friday, April 5, 2013, AM | 5 Comments
Approving a car loan with bad credit and cash down might not be a cakewalk, but it is very much possible. You might have to engage in a lot of research, negotiate with a lot of dealers but ultimately you will be successful and happy to see that your credit score has increased.
Firstly, stop repenting about your blunders and just remember that they are only a handful number of people belonging to the league of having excellent credit score.
Thereafter take up the mentioned five steps to get your car loan sanctioned despite having a bad credit and zero money down.
Do You Know Your Exact Credit Score?
Knowing your exact credit score is the first thing that you must consider doing before approaching any car dealer or financial institutions.
There are many online websites from where you can know your credit score within a fraction of second. So take out some time to check it thoroughly.
In case of any inaccuracy contact, the concerned authority at the earliest as even minute difference in credit score can greatly impact your interest rate on car loans.
If your credit score is above 660, then most finance company will be eager to offer you car loan at as much as 3 to 4% interest rate.
However, if you have credit score between 660 and 580, then higher interest rates will be charged. And for persons with credit score below 580 it will be really difficult for get their loans sanctioned.
Search for Pre – Approved Auto Loans Providers
On the cyber world, you are going to come across many online companies that provide pre-approved auto loans to clients with bad credit history.
All you need to do is fill up a form stating the details needed by the company for processing your request.
Thereafter, you will get an email from them stating your credit limit, applicable interest rates and other terms and conditions.
Check with two or three online finance companies to compare the interest rates and sign up with the best one. Now, you can walk confident in any of the car dealer’s showroom in your locality to get a new car.
Prepare Your Budget
Just because an online finance company has offered you a large amount of loan, it does not mean you should utilize the whole of it to buy a really expensive car.
Prepare a budget considering your main earnings and all your regular expenditures. This will help you to understand how much you can spend on the monthly installments of car.
Search for the Car
Once you have allocated the funds for your car, now start searching for the right vehicle that comes within your budget.
Most bad credit car dealers have online platforms from where you can check the prices of the cars as well as whether they provide cars without down payment.
So spend some quality time for searching the most affordable and good option.
Bargain With The Dealers
Once you have walked into a car showroom with a pre-approved loan, they will say that the car you have opted for is not available.
Thereafter, they will start showing you other options. But remember the sales executive will mostly show off the options that are profitable to them. So do not fall trap to such offers.
Next, when they realize that you are not ready to compromise with your choice, then they try to negotiate on the interest rates.
They will provide you with a loan with 1 to 2% less interest rate from the pre-approved loan so that they can make profit from car financing as well.
So make the best use of such benefits so that you can save a quite some amount.
By following these steps, you will be able to get a car loan with bad credit and no money down in the easiest and the fastest way.
By repaying back the loan in time, your credit score will increase and you will be able to apply for other required loans for your home as well as other necessities.
So what are you waiting for? Get your own free logbook loan quote today and enjoy the bets services!!Facebook.com/doable.finance
- Apr 14, 2013: Can I Get A Car Loan With Bad Credit | Bad Credit Makeover