Just because you’ve filed for bankruptcy or made mistakes on your credit in the past doesn’t mean that you’ll automatically be disqualified for a car loan. Here at Good Fellow’s Auto Wholesalers, we work with many consumers who have less than perfect credit. We are dedicated to finding you a car and loan that fits your needs, regardless of your financial history. Below, we have listed some tips to help you secure a bad credit auto loan.
Review Your Credit Report
Before you apply for any type of loan, it is important to review your credit report. Look for any mistakes, wrong addresses, or inaccurate charges. Any items on your credit report that are wrong should be updated. Late or overdue payments should also be rectified. In many cases, you can provide an explanation for negative issues on your credit report along with your application. For example, if you became ill and were unable to work, thus became late on your bills, it will help give context to any negative items on your report.
Condense Your Finances
Having a few lines of credit is important to improve your credit profile. However, excessive amounts can have the opposite effect. Idle store credit cards and lines of credit should be closed. Accounts that don’t have a balance should be closed first. If there are balances on your accounts, make an effort to pay them off or pay them down. The more streamlined your credit report looks, the better chance you have at landing an amenable loan.
Confirm Your Budget
Wanting a new car and being able to afford a new car are two different things. Take the time to sit down alone or with your partner to assess your current finances. Look at your income, current expenses, and then calculate how much you can put aside for monthly car payments. This will give you a realistic idea about how much you can borrow without the danger of defaulting. When you have bad credit, lenders will put your loan through an affordability check. If you don’t pass, you won’t be approved, so make sure to evaluate your situation before you apply.
Arrange Your Loan Payments
As a borrower, it is important to be aware of the cost and expectations attached to your loan. Before you visit our car lot, we recommend making a payment plan that you can stick to. This plan should list your expected loan amount, monthly payment preferences, and monthly income. This helps us understand what you require from your loan so we can best meet your needs. Additionally, having a detailed plan can help speed up the bad credit car loan application process.
Choose Your Lender Wisely
Securing a bad credit car loan is a great way to boost your credit profile and give you the transportation that you need. However, it’s important you work with a reliable lender who has your best interest at heart. Good Fellow’s Auto Wholesalers is always here to help anytime you need help with auto financing. Give us a call at 1 (855) 581-9590 today to find out more about how we can get you on the road.