Trying to get approved for a car loan when you have poor credit due to past mistakes or a bankruptcy can often be a pain. However, there are quite a few options available to you that can help you increase your chances of getting approved for a car loan, despite the fact that you may not have the best credit. Listed below are three ways to improve your chances of getting approved for a car loan with bad credit.
Consider A Buy Here Pay Here Dealership
One of the first options available to you when trying to get a car loan with bad credit is a buy here pay here dealership. Now, these dealerships basically focus all of their attention on individuals that have poor or no credit. The way that this dealership can help you is by completely forgoing the use of any banks, car financing companies, or other financing options in order to offer you a car loan directly at the dealership.
The reason that this is so useful is that the buy here pay here dealership will often not even bother checking your credit. The only thing they really care about is that you show them proof that you have a job and can prove that you make enough money to afford the car payment. However, the downside to using this type of dealership is the fact that you can often end up paying a higher interest rate than you would with a more traditional car loan, but this is still a useful option to consider if you are not able to get a traditional car loan.
Save Up For A Larger Down Payment
Another option to consider if you are trying to improve your chances of getting approved for a car loan is to simply save up for a larger down payment. Sure, this can often be a bit difficult if you are a bit short on cash, but it can often make all the difference between being denied a car loan and getting approved for a loan so that you can leave with a new vehicle.
Pay A Visit To Your Bank
Finally, if you are attempting to get a car loan and have poor credit, one of the best resources at your disposal can often be the bank that you currently do business with. In some cases, these banks may be willing to be a bit more understanding or lenient of your credit situation in order to get you a car loan. The reason for this is that some banks may often be willing to bend the rules or requirements a little bit in order to help out a customer that has been doing business with them for quite some time and has been in good standing for quite some time.
There are many different ways to increase your chances of getting a car loan with bad credit. Considering a buy here pay here dealership, saving up for a larger down payment, and paying a visit to your bank are all great options to consider for car financing for people with bad credit.
Share29 April 2017
When I began my first business selling sports equipment locally, I knew the sports-world well, and I knew how to run a business. One thing I did not know a lot about was the financial world. I had never applied for a loan in my life other than when I financed my car with the dealership in-house financing. My first application at a large bank was denied. I began looking into my other options, and I found that there were more lenders for new businesses than I realized. I applied at local credit unions, local banks, and other business lending services. I was able to secure more funding than I even expected, and my credit is just average. I created this blog to help other new business owners realize that there is funding out there. You just have to find it and apply! Don't give up on your dream.