If you have bad credit, you know the pain of trying to purchase just about anything of significant value. A new home? It’s not in the cards right now. A fun vacation? Maybe next year. A new car? Not in your wildest dreams. Or is it? With the growing number of bad credit car loans being issued today, people with bad credit and no credit have a fighting chance of hearing those magical words: “You’re approved.” However, in order to hear those magical words, you have to shop smart, be patient and follow these words of wisdom:
Improve Your Credit
Though this post is meant to help people with bad credit, you shouldn’t forego your credit entirely. If you want to get the best rates your score will allow and terms that are reasonable and affordable, take measures to improve your credit. If you can, hold off on buying a vehicle for at least six months. In that time period, pay off whatever credit cards you do have. Get a secured credit card if you don’t have any cards in your name and cannot get approved for a “real” one. Put small purchases on your card and pay them off right away. You’ll be surprised by how much your credit improves just by doing this one thing.
Companies like Capital One offer preapproved auto loans to people with subpar credit. If your credit isn’t terrible and if you have verifiable income, you may be able to get preapproved for a loan within a matter of minutes.
Find a Dealer Who Will Work With You
Some dealerships don’t have time for people with bad credit; avoid those guys. Look for a dealership that is willing to put in the time and work to find you an auto loan with terms and rates you can afford. Though it may take days, the right dealership won’t stop looking for a loan for you until they’ve found one.
Bad credit car loans are not as rare as you might think. If you have bad credit or no credit, use the tips above to drive away in your new car as soon as today!