If you have bad credit, you may think that getting an auto loan is impossible. You may have faced rejections from lenders or dealerships who are unwilling to work with you. You may have settled for high interest rates, short loan terms, or low-quality vehicles. You may have given up on your dream of owning a car altogether.
But don’t lose hope. There are ways to improve your chances of getting approved for an auto loan with bad credit. You just need to know where to look, what to do, and what to avoid. In this guide, we will show you how to find the right financing options for your situation and how to get the car you want and deserve.
Understanding Bad Credit and Auto Loans
Bad credit is a term that describes a low credit score or a poor credit history. Your credit score is a number that reflects your creditworthiness, or how [...]
Your credit score is a key factor in your financial life. It affects your ability to get approved for loans, credit cards, and even some jobs. A high credit score can lead to lower interest rates and better terms on financial products, while a low credit score can make it more difficult to get approved and can result in higher interest rates.
Fortunately, there are steps you can take to improve your credit score. Here’s a comprehensive guide to improving your credit score:
Pay your bills on time. Payment history is the most important factor in your credit score, accounting for 35% of your score. Make sure to pay all of your bills on time, including credit card bills, loans, and utilities. If you’re having trouble making your payments, consider setting up automatic payments or talking to your creditors about a payment plan.
Keep your credit card balances low. Credit utilization – the amount [...]
Comments Off on Tips & Tricks To Build A Better Credit History
Building a good credit history is essential to your financial future. This article will teach you how to responsibly build your credit, while avoiding the mistakes that could hurt your score and cost you money.
The Basics of Credit Reporting
Here are some things you should know before building or rebuilding your credit:
Credit reports are used by lenders to determine how risky it would be for them if they loaned money to someone with low or no credit history. If there’s something in a report that might make a lender think twice about granting the loan, then this can lower their credit score significantly. Late payments, repossessions, bankruptcies, even divorce can all have a negative impact on your credit report.
When you owe someone money, that debt can come in many forms which can include mortgages and car loans. All debts – regardless of type – should appear on your credit report if they [...]
There is no worse feeling than having a vehicle repossessed. Watching a car get towed away due to nonpayment, or worse, waking up to find your vehicle missing from your driveway is an awful experience. Coupled with the fact that you now do not have a car, people can find themselves in a terrible situation very quickly. There are ways forward after a vehicle gets repossessed and there is a possibility you may be able to finance another rather quickly, but a history of repossessions can be a major credit hurdle to overcome.
WHAT IS A REPOSSESSION?
Whenever you finance or lease a vehicle, you sign a contract between yourself and the lending company. This contract stipulates the amount financed, the term it is financed for, interest rates, and other financial terms. Purchase agreements also include provisions for the lender to recover costs and expenses should you default on your payments.
These days it seems plastic is king. With products like ApplePay, Google Pay, Zelle, Venmo, and CashApp it is fast and convenient to move (and spend) money without ever touching actual cash or change. Consumers in the US have become more reliant on plastic, in particular credit cards. A study from September 2020 shows that 70 percent of Americans currently have a credit card. The same study shows there are 1.06 Billion credit cards currently in use nationwide, an amazing statistic.
But when it comes to using a credit card, most people fall into two categories: using the card for everything or using the card for nothing. As with most things in life, balance is important. If you’re using a credit card for everything, you can land yourself in a revolving credit nightmare with an increased chance you won’t be able to meet all of your monthly bills. If you have credit cards but don’t [...]
Disclaimer: We are not a lender and do not offer loans or make determinations of eligibility based upon creditworthiness. We connect you with reputable dealerships near you. All lending decisions are made by the lender and we do not guarantee approval or that any loan terms or rates provided or offered to you will be the best terms or the lowest rates available in the market.