When you are looking for a car loan, your credit plays a huge factor in how the process will play out. If you have good credit, the sky is the limit. But, if you are experiencing issues with past credit damage, you may need to bring something extra to the table.
Lenders want to see a clean credit report. When they don't, they have to consider the possibility that it may be risky to approve you for a loan. This means that you will need to show them that you are committed to repaying the loan, should you be approved.
Increasing the Odds
In order to place the odds in your favor, there are several methods you can employ to get the car you need when you have a low credit score.
A cosigner is a friend, spouse or family member with a good credit rating who is willing to sign on the loan alongside you and take on responsibility for the car loan should you default on the payments. It can be anyone you choose, as long as they meet all of the proper lender income and credit requirements.
- Down payment
A down payment can be extremely beneficial. It shows the lender that you are a serious buyer and are committed to the purchase. Additionally, the more money you have to put towards the loan, the less you will pay on your monthly payment. And depending on how much you put down, you could have instant equity in the vehicle. Also, it is possible that the lender will lower your interest rate.
- Trade in
Similar to a down payment, the cash value in your previous vehicle may be used towards the purchase of your next car, truck, or SUV. It might even satiate the need entirely for a cash down payment.
- Work with the right dealer.
There are car dealers that are connected to experts who specialize in providing subprime auto financing. These dealers work with bad credit car buyers everyday, and know how to look beyond a credit score.
Everyone Deserves a Second Chance
Drivers Lane can help you qualify for the auto loan you have been searching for. Working with the right lender can make all the difference. When you complete the simple, fast and secure online application, you are taking the first step towards your second chance. From there, you will meet with us to discuss the financing terms and select a vehicle. Get back on the road today.