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Five Steps to Getting a Loan With Poor Credit

Reversing poor credit requires hard work, and that hard work is even more challenging when you don’t have a car. Fortunately, there are some steps you can take to get transportation to and from your job.

 

One: Have an Open Mind

 

With a poor credit history, you probably won’t be able to secure a traditional loan, but you may have more success with bad credit car loans. These typically have higher interest rates, so be prepared to pay a little more.

 

Two: Stay Away From Additional Credit

 

One of the most common mistakes people make when using credit to make a major purchase is to open up a new credit card or account. You may want to take a look at your credit history, checking for errors and correcting inconsistencies.

 

Three: Be Realistic Concerning What You Can Afford

 

There are two important parts to this. The first is your monthly payment. Consider your most difficult months and determine how much of a payment you’d be able to make at those times. Your car payment probably shouldn’t be much more than that. The second thing to consider is the overall cost of the vehicle. Consider how much you’ll have to pay as a down payment, how much maintenance the vehicle will require, and how much gas and insurance will cost.

 

Four: Try to Find a Co-Signer

 

If you have a friend or family member with good credit, you can improve your chances for getting a loan. The terms of that loan will also be easier to live with. That co-signer (or co-borrower for even more benefits) will give the lender assurance that the loan will be paid, even if you struggle to make payments.

 

Five: Don’t Settle

 

While being realistic about your options, you can still discuss better terms, such as the length of the loan, the interest rate, prepayment penalties, and annual percentage rate. Factors such  as the prepayment penalty may be much easier to get rid of, whereas the interest rate may be harder to negotiate.

 

Poor credit will make obtaining a loan more difficult, but it shouldn’t prevent you from getting a car. Use these tips to improve your chances.

How In-House Used Car Financing Can Benefit You as a Student

If you need a quality used car to get to your college or university classes and to your part-time job, your limited credit history may result in a low credit score. However, there are several alternative to traditional loans, such as bad credit car loans and in-house financing. In fact, as a student, in-house vehicle financing may benefit you, and we’re here to show you how.

 

More Loan Options

 

Used car dealerships that offer in-house financing often have a variety of loan options available that you may not be able to get from a lender that is more demanding. While you may not get the best interest rates, many dealerships are willing to work with students that have a limited credit history. It’s a good idea to learn about more than one type of loan from your dealership before you settle on one that meets your budget.

 

Convenience

 

A full load of classes, work and family obligations probably keep you busy all day, every day, so paying for your car in a way that is convenient is probably going to be important to you. In-house financing means you pay the dealership directly, so you can drop payments off on the way to or from school or even after your evening class, since some dealerships are open in the evening. Making your payments on time and in a way that is simple can help boost your credit score and enable you to keep your daily schedule flowing.

 

A Chance to Build Credit

 

As a young person with limited credit options, using bad credit car loans and in-house financing can actually improve your credit history. As you make payments and work toward meeting your loan’s requirements, you might see your credit score climb. Using in-house financing can start you down the path to building an excellent credit score for the future.

 

Owning a quality used car can make life as a student much more convenient. If you have a limited credit history, then using in-house financing might help this goal within reach.