Your credit matters, but you can still be approved for an auto loan if it is less than perfect. Still, it can be more difficult. Here are a few things that can help your auto loan application.
Improving Your Approval Chances
These things can help you increase your chances of getting approved for auto financing.
- Every Little Bit Counts
If you are dealing with damaged credit, you may only qualify for less than favorable rates and terms. So, you should do what you can to improve your credit before applying. If you are behind on any bills, you need to get current on them. Also, try to pay down high credit card balances and keep them under 30% of their maximum.
- Check Your Credit Reports
Before filling out an auto loan application, you can request copies of your credit reports to make sure all information is accurate and up to date. You can dispute errors or inaccuracies on your credit reports and getting them removed can give your score a boost.
- Have a Large Down Payment
The larger the down payment is, the lower the amount of the loan will be, which helps your approval chances. Subprime lenders will closely evaluate the risk associated with a loan, and financing less represents less of a risk. Also, lenders will see that you are committed to paying back the loan when you have money to put down.
- Get a Cosigner if Necessary
If your credit score is low, you may be asked to get a cosigner. This person agrees to sign the loan agreement and take responsibility for it alongside you. However, because it's a big commitment, it's best to only ask a family member or close friend to cosign. Also note that they have to have good or great credit in order to help you.
- Find the Right Dealership
If you need car financing with bad credit, you need to find a dealership that can work with you. Dealerships with a special finance department have connections with subprime lenders. These places specialize in helping people in all types of credit situations get financed.
Finding The People Who Can Help
A bad credit car loan is the perfect way to get the transportation you need. Why? Because it gives you the chance to rebuild and improve your credit with every on-time payment. Drivers Lane can guide you in finding a dealership that can help you get financed. You also may even be able to get approved with little or no money down.
Get the process started by completing our free and easy online application.