Information about getting a loan for Vehicles.
Some of us have bad credit and that can be a problem; especially if you want to get a loan for buying a new car or repair your existing vehicles, such as to replace your motorhome windows. But's it not all doom and groom if you have bad credit rating and looking for a vehicle. There are several factors that are involved in getting a loan with bad credit such as: how long you've been working at your job, your income and how much debt you have. Other factos such duties of executors of a will and other various factors may be needed.
Car Loans and the Financial Crisis
About a decade ago, before the financial crisis, those with bad credit were getting financed but after the crisis, it was tough getting credit even with a good credit score. Today, lenders are financing and if you have a credit score that is above 550, you have a better chance of getting a car loan. However, if you have bad credit, you may be in danger of paying a very high interest rate.
Steps to take with a Bad Credit Car Loan
To ensure that you get a car loan with bad credit, there are certain steps you need to take such as knowing your credit score and making sure that there are no errors in it. You can check your credit score at no cost at www.freecreditscore.com. The next step would be to get some quotes from online lenders. Online lenders can send out your loan application to various lenders to see which one can give you a chance of getting the loan you need and want. Once you have done this, you will know within 48 hours if you are approved by any lenders. Then, write down the rates that were given to you and then compare the lenders.
Contact your bank or Credit Union
Your next step would be to contact your credit union or local bank to see if they can offer you financing for a car. Once this step has been completed, you will know how much you can finance and then you can think about the kind of car you want to purchase. The kind of car you purchase will depend on the price and what is available in your area.
Once you are approved for financing but find that the rate is high, you may want to reconsider going through with the loan. If you feel that you don't need a new car, you may want to stop the process and save your money, keep improving your credit and do the car loan another time. Keep in mind that if you do follow through on the car loan, you can refinance after a year of making payments on time. In addition, at that time you may be able to qualify for a lower interest rate. Also, if you aren't able to get financing by following the above steps, a co-signer may help you get the loan.
It is important to keep in mind that a large down payment is important; especially if you credit score is low. Most lenders are willing to approve your application if they know you are able to put down at least 20 percent of the purchase price of the car. Most importantly, if you can get a loan from your credit union or bank before going to the car dealership, you will be looked upon more favorably because they will see you as a person who is prepared and ready to make a deal.