5 ways to drive a nicer newer car without perfect credit.
Bad Credit Auto Loans!
1. Prepare Yourself Before Applying
Make sure you have your bills figured out!
When you’re looking for bad credit auto loans it’s important for more than one reason. First, you need to make sure what you tell the finance company about your bills every month is accurate. You don’t want to get approved for a car then have it be wasted because there is a big enough difference in your finances to scare off the finance company. Second, it is important that you keep within your budget! The great thing about most finance companies is that they don’t want you to overstretch yourself. You shouldn’t want to over stretch yourself either!(especially when looking for bad credit auto loans) If you stick to a realistic payment then you will be happier with your auto loan in the end!
Know How Much Money You Make
I cannot tell you how many times I had a customer apply for an auto loan and not know how much money they make. It truly is mind blowing! First of all Get your latest paycheck stub it should tell you how much you’ve made so far for the year. Take your total yearly earnings then divide by a number of months you’ve worked there this year. Don’t forget to add any other earnings you make, like child support or social security. If you are self-employed you will need your tax filing for the last few years (usually). Get these together then keep them in a safe place, and make sure they are verifiable!
Figure Out How Much You Can Afford Every Month
Please try and come to a realistic amount of what you can afford every month for your car. Keep in mind though anything under $200-300 with bad credit is usually pretty rare(without a large down payment). This is so important and most people don’t give it enough thought. If you don’t think you can afford a car payment then don’t buy a car! If you don’t have a choice then cut something out or work overtime. When you have bad credit and you don’t make much money it can be tough. I know what this feels like, remember though you’re not going to have bad credit forever!
2. Know what your credit is
You can receive your credit file for free at annualcreditreport This information is important since you know what is out there on your credit file. There are 3 reporting agencies Equifax, TransUnion and Experion who put together your credit file. Now, this site won’t give you your actual score without paying for it but it will give you the details of what is on your file. If you have an old payment you have neglected you can get it paid off and removed from your file before you go shopping. If you find something that you believe is incorrect on your file here is the link that can help you dispute the claim and the reporting agencies have 30 days to either remove it or respond back to you. Here is the link to dispute a claim. Knowing your information is key to improving your chances on a better car loan.
3. What Vehicle Should You Buy?
Listen up! I know you want a Lamborghini, but this super high-end vehicle may be just a bit out of your reach today. Even if you convinced a lender to say, “Yes,” do you really want a $1,000+ car payment every month – this can leave a giant hole in your budget – and we haven’t even discussed how you would pay your insurance each month.
Think about your family. Do you have kids? Do you need space? Well Everyone wants a big 4x4 SUV but have you considered all the costs? It may be better to go for a van. I know Most people don’t want to drive a van, but try to keep in mind that your credit wont be bad forever, and next time around (when your credit is better) you can get an SUV.
Do you really need a truck? OK well If you do really need a truck for work then I understand. If you just want a truck for the sake of having a truck and you make less then 2k a month you may just need to wait until your credit is better. Look it may not be nice but it’s the truth! Take it from me I have seen too man people get way in over their head for getting something you want VS Getting something you need.
4. Count your money
Maximize your paycheck
Now that doesn’t mean falsify your application since almost every lender will want to see your current paycheck, but if you have had some time off and your most recent pay stub will be short wait till you get a full check or better yet one with some overtime. If you have taken some time off during the year and your year to date is lower than normal be sure to explain it to the dealer so they can talk to the lender and let them know the story. If you are working for a temp agency try to get on with the actual company you are doing the work for if possible. Many lenders won’t make a loan if you are with a temp agency so this could make a difference in getting the loan you want.
Save for a larger down payment.
Many times having a larger down payment will help get you a nicer newer vehicle over the back row beauty that is parked behind the dealership. I
know dealers are always advertising 0 down or low down payments but if you want to have better options on your selection the down payment will make the difference. Now is the time to call in those old loans when you borrowed a buddy a couple of hundred dollars months ago. Just let them know you need to get a car so it’s payback time. Sometimes a parent or someone close would rather give you some extra down payment rather than co-signing with you. This gives you the chance to establish your own credit without a cosigner on the loan.
5. Lets Go Shopping
Not every dealership is for people with bad credit. I have seen people drive around for days looking for a dealership that can actually help them. Every dealership will say that they can get you approved, but with bad credit (under 600 scores) most cannot. They are hoping you have better credit than you think, then retain you as a customer. Well, that is where Auto Credit Express comes in when looking for bad credit auto loans.
ACE (Auto Credit Express) is the link for people just like you. Instead of taking your chances with every dealership, they get you actual help with financing. They are a leader in the business and have helped over 1.7 Million people buy a car, so yeah you can count on them! Like it says in our slogan, we sift through all this stuff so you don’t have to!
At the time of writing, this article ACE had over 183,000 Applications Processed, That’s over 137,000 Applications in the first month of the year. They also had 1,160 active participating dealerships nationwide. The chances that you could realistically get financed quickly are pretty good! That is why we recommend them, They are just too good at what they do to ignore!