Your credit score plays a big role in your ability to secure a loan to be used for purchasing a new vehicle. Bad credit and no credit are more common than excellent credit scores. There are many things that may happen along the way that results in a person having a less than a perfect score, but that doesn’t mean that you won’t be able to secure a used car loan. Good Fellow’s Auto Wholesalers has some tips to help you land a car loan regardless of your poor credit.
Know Your Credit & Your Budget
A lot of people are unaware of their actual credit score. Some think they have a poor score or no score at all, and then will turn out to have good credit. There are also those who thought they had a good score who find out during an application that there are overdue bills or late payments that have caused their score to drop. Understanding where your credit stands will help you gain perspective in the type of vehicle loan you can expect to be offered.
Lenders make money from offering you a loan, so it is in their best interest to be generous. Although you may be offered a high loan amount, you should set a budget for your car that you can afford over the long term. Decide how much you plan to pay monthly and err on the side of caution. It is much better to be cautious and stick with an affordable payment as opposed to overspending your budget and leaving yourself short in the event of an emergency.
Checklist for Your Loan Application
It is invariably a good idea to come prepared when applying for a car loan. The more information you have on hand, the better our loan specialist will be able to help. Every situation is unique, and creating a custom loan solution that fits your life is just one way Good Fellow’s Auto Wholesalers can help. Here are some things you should have on hand when applying for a car loan:
- A set budget range
- Your planned down payment
- A recent credit report
- Proof of income
- A list of target vehicle types and models
- Your ID
- Proof of insurance
- Banking information
Coming to our dealership prepared will give our specialist all of the information they need to set you up with the best car loan for your budget.
Build Credit with a Car Loan
Securing a car loan is a great way to heal bad credit or boost a mediocre credit score. A car loan carries less risk than a home, so banks and other lenders are more eager to approve these loans for bad credit borrowers. Paying your monthly car payments on time will build your history and improve your credit profile.
How We Can Help
Are you tired of driving around in that old car? It is a perfect time for an upgrade, and luckily, Good Fellow’s Auto Wholesalers is here to help. We have around 150 vehicles in excellent condition on our lot. Our team also consists of some of the friendliest and most knowledgeable financial experts around. If you would like to find out how to apply for your bad credit car loan, give us a call at 1 (855) 581-9590 today for more information.