Bad credit makes it hard to get any kind of loan. But with access to the correct information, a bad credit car loan is just a click away. Look here.
What Is a Car Loan？
Although a personal loan can be obtained for the same reason, a car loan is obtained specifically for the purpose of buying a car.
These are long-term loans that can span as long as 5 years or even more. This way, borrowers can get huge sums of money and repay as little as a couple hundred dollars per month in a way that works for them.
Car loans are secure for the lenders in the sense that you need collateral, except that in this case, the car you are trying to purchase is the collateral.
Lenders usually only approve car loans for vehicles that haven’t reached a certain age. For older cars, since the value of cars depreciates, they might not be able to make their money back (in case you default).
These loans incur simple interest, with rates depending on various factors such as the lender and your credit score. The longer the loan period is, the smaller the monthly payment is, which can make it easier to pay. See SE Financial for more information.
On the flip side, the longer the loan period, the higher the interest that you will have to pay, so you will end up paying more in the long run.
It is important to find a balance so your monthly payment is affordable but the total interest paid isn’t too much.
What Happens if I Default on My Car Loan Payment？
You do not get to fully own the car till the loan has been completely paid off, no matter how long it takes. Till then, you can’t use this car to get a title loan and failure to meet up with monthly payments can lead to the following.
- Loss of Your Car
The car can be repossessed by the lender. Some lenders may allow you to pause payments for a period of time or refinance the loan and change the terms to something more affordable. But this is not common.
- Slash in Credit Ratings
Even if your lender agrees to find an alternative, your credit rating will be negatively affected by a default, which can hamper your loan eligibility in the future. It is even worse if you eventually lose your car.
Application Through a Car Dealer
This way, you do not have to apply for the money. Rather, the car dealer selling the car to you allows you to take the car on credit after agreeing to a repayment plan, they will be the lender in this case and will have the right to repossess your car if you miss a payment. Application through car dealers usually comes at higher interest rates.
What Credit Score Do I Need to Get a Car Loan？
You can actually get a car loan with bad credit. The only problem is that the lower your credit score, the higher the interest rate and the lower the chances.
Typically, you need prime credit (above 661) to get a car loan at a good interest rate.
If you fall under this category, there are ways you can still apply for a car loan with a high chance of approval.
How Can I Apply for a Car Loan With USBadCreditLoans？
US Bad Credit Loans connects you to a large base of trusted lenders who are willing to approve loans irrespective of credit scores.
You can apply for bad credit car loans with USBadCreditLoans by following these simple steps.
- Fill out a Form
You will be asked to fill out a form indicating the amount you wish to borrow, your income details, your bank information, and some of your personal information, such as your contact address and phone number.
- Wait to Get Approval
Lenders will review your application, verify your information, such as your employment status, and then start sending offers. You get to pick which offer works best for you as different lenders offer different rates and terms.
- Get Funded
Once you accept an offer, the funds will be sent by the lender directly to your account in no time.
Here are the criteria you must meet to apply for a loan.
- You must be over 18 years of age.
- You must be a citizen.
You will be asked to show a means of identification that proves the two points above
- You must have an active bank account
- You must have a regular source of income.
Here are a couple of things we offer.
- Bad Credit is Considered
The site is ideal for bad credit so you can get approval even though your credit is less than perfect.
- You Have Options to Pick From
Not one, but multiple lenders will then send you offers. This way, you can compare individual rates and terms and pick what works best for you.
- Loans Are Approved And Funded Quickly
You can get approval within minutes. Once you accept the offer, the money will be sent to you as quickly as possible.
Application, approval, and funding are all made online.
- Confidential and Secure.
With bank-level security, you can be sure that your information is safe with us.
Besides getting a bad credit loan from an online broker, here are other viable options for people with bad credit.
If you are a member of any credit union, you can get access to car loans with bad credit at lower rates compared to traditional banks.
Car dealers can give you a car that you will pay for over an agreed period of time. There is usually a need for a downpayment. Let it be noted that car dealers usually offer a higher interest rate than banks do, but you are more likely to get approval from them.
A bad credit score should not stop you from going after your dream car. Send in your information today.