Finding Auto Loans with Less Than Perfect Credit


Having a vehicle is one of the things that makes our lives easier. Beyond that, having transportation to and from places can enable us to get better jobs and live a better life. Yet, to get a vehicle, many people think that they have to either have a lot of money, or stellar credit. Neither of these assumptions is correct though. Lenders know how important a vehicle can be, so a few of them have become dedicated bad credit lenders. But, getting a loan will still require you to take a few important steps. Here’s how you can get a bad credit auto loan and make yourself present in the best way possible to the lender you choose to apply for a loan through.

Know Ahead of Time

Walking into things with as much knowledge as possible is probably the one thing that will give you an edge on the situation. Even if you think you know what your credit report says, get a copy of it and know for sure. It’s free to get your report once a year, so there really is no excuse as to why you shouldn’t get it. This will also help you identify any inconsistencies that might exist on your credit report, allowing you to dispute any entries that you don’t think belong to you. Once you know what’s on your report, you’ll be able to approach the car loan process far easier than before by taking letters to explain repossessions or other really negative marks that might be on there. Also, consider saving up a significant amount that can be used for a down payment to prove overall that you are serious about the loan that you are trying to get.

Online Applications

The internet has made it easier for people with bad credit to find information and to get loans for things like a car. In fact, today there are a number of bad credit lenders who offer online information and applications that enable everyday people to apply for, and be approved for loans they never thought they’d be able to get. If you’re looking for a vehicle loan, consider working with a lender who offers online applications, as they may also offer lower interest rates and better terms than companies you might find offline. At the same time, be careful when you are dealing with information online, as you run the risk of identity theft. Be sure to check out the lender you are considering to make sure they are secure and have a good reputation throughout the internet.

Local Operations

Another option for people who have poor credit is the buy here/pay here option. Local dealers can be more expensive than dealers who are not in the local area, or larger dealers that have locations across the country, but they are often far more willing to work with people who have poor credit than those larger dealers. Know what your credit report looks like, and what your scores are, then call around to get information from various small dealers in your local area. Tell them what you know and see if they sound confident that they’d be able to get you the loan that you need, or the financing possible to get you into that new or used vehicle.

Paperwork and Documents

Another important thing to prepare before you head out and look at actual cars is the documentation you’ll need to back up your new credit standing. If you are serious about getting a loan, you’ll need more than the basics like your driver’s license and social security card. You’ll also need letters explaining repossessions or other bad marks on your credit report, as well as proof that you have a good standing bank account and any letters of reference from current creditors. If you have lines of credit that are in good standing, or you’ve paid off any car loans in the past, be sure to have that proof with you as well. Every little thing helps when you’re trying to get a car loan.

Bill Consolidation

Another good idea, when it comes to trying for a car loan, involves consolidating the bills that you currently have. Lenders are more likely to give you a loan when they know you have enough money left over at the end of the month to cover everything. As such, make a bigger gap by putting bills you can together and reducing the overall monthly cost of the things that you pay. This will also help you boost your credit score and put your overall credit on the path to success now and in the future.

Kim Hill works hard to offer bad credit personal loans to consumers with less than perfect credit. When she's not working, she loves to spend time with her pets and read.