Sometimes it’s hard to keep in a positive frame of mind when your credit score is in the gutter. Nonetheless, you needn’t feel that way forever. If you’re in the market for a new car because your old car is ready for the scrap heap, you needn’t scrap your dreams as well with regards to a new car purchase. Even if you have poor credit you can still qualify for a loan through any of the bad credit car financing programs available on the Internet.
The Bad Credit Blues
Forget that you have a credit score that you wish you could junk with your old vehicle. You can get back behind the wheel of a new model car by applying for a bad credit car finance loan. So, what do you need to do in order for this to take place? Well, besides selecting a car to buy, you’ll need to make sure you can meet the criteria that most lenders who provide car financing for bad credit are looking for in the way of eligibility.
Eligibility Requirements
If you have no credit history, you should be on your job a year before applying for a loan. With a credit history, you’ll need to show proof that you’ve been on the job two years before trying to secure any car financing for bad credit loan. Typically the minimum monthly income requirement is $1500 for most bad credit car loan financing programs. In addition, you can’t have a repossession within the last year unless it’s part of a bankruptcy. Oh! And one more thing, it’s a requisite that you be at least 18 years old.
The Payment Structure
Your monthly payments for your car financing with bad credit loan will be based on the sales price of the vehicle you’re purchasing and your credit report. If you choose to buy a newer model automobile with lower miles, many times lenders can extend the terms of the loan making the payments lower. This is especially helpful if you have to finance your vehicle for a higher APR. If you’re so fortunate, you can secure a great deal on most vehicles that are lower priced with an odometer reading of less than 5000 miles.
The Benefits of Finding a Lender Online
Rather than secure your loan from a “buy here, pay here” dealer, using the Internet to find a lender who specializes in financing a car with bad credit is the better choice for most sub-prime borrowers. With a “buy here, pay here” dealer, you don’t need to reveal your credit history which many sub-prime borrowers like. However, once you purchase the vehicle, none of your payment transactions are recorded on your credit history. Therefore, you don’t have the chance to climb out and away from your poor credit standing. With bad credit car financing, by making your monthly payments, you’ll have the chance to qualify for a lower interest loan in the future.
Look online today if you’re in the market for a new car. There’s a lender out there who will help you with your bad credit car finance loan.
photo credit: Rachel Strohm