Having a bad credit is nothing new nowadays when almost every household struggles to make a living out of their little income.
But the fact is that having a bad credit doesn’t mean you can’t buy a car or you can’t get a car loan with terms that won’t affect your monthly budget.
Depending on your credit score, your monthly income and expenditure, you can still be able to get a car loan on bad credit almost instantly. In fact, most of the lenders are only interested in your present situations, not the past events that put you in bad shape financially.
If you have a bad credit score or have been refused credit before, no problem. Some lenders can still help you find a solution using their bad credit car finance options. Most of these lenders base lending on whether you can afford the repayments now, not on your poor credit score from the past.
How To Get A Car Loan On Bad Credit Almost Instantly
If you are having troubles in getting a car loan on bad credit, don’t worry yourself too much. There are still ways to get bad credit car loans almost instantly.
There are some lenders out there that have provisions for bad credit car loans. In fact, some car loans are being made at lower rate (lower percentage), you just have to shop around.
You can find and fill the application online without any hassles of faxing documents or paperwork. Below are steps you should take if you have poor credit history and want to get a car loan on bad credit almost instantly:
#1). Don’t assume your credit is bad – find out yourself
Yes, you may be struggling with money but that doesn’t automatically mean you have bad credit. In fact, every financial difficulty doesn’t usually mean you are in bad credit.
It’s important for you to understand what credit rating is and how you can boost yours. Don’t take someone else’s word that your credit is bad.
There are loads of online resources on how to find out more about credit scores and rating. Do your research oneline, you will get good and creditable websites that offer the services. Even if your score is tarnished, you may have a better chance than someone with the same score and no credit history.
#2). Shop around – compare the rates and go for the best one
Shopping around is very important if you want to get a car loan on bad credit almost instantly. In fact, you can never get a better deal without shopping and comparing rates.
Some people are too lazy or I should say too “assuming” when it comes to getting bad credit car loan. They just assume they can’t get a car loan on bad credit because of their financial difficulties, and give up searching and shopping around for better deals.
The fact is that some lenders don’t mind your bad credit history. They see your credit history in a more positive light than others.
#3). Shop for short loan terms, not monthly payments
While doing your shopping around and comparing the rates, make sure you shop and go for the best car loan. You should make sure you look for the cheapest car loan with the lowest APR over the shortest period.
It’s important to stay focused on what you are doing while shopping around. Don’t get distracted or rather enticed by promises of a lower monthly payment over a longer period of time. There are many different lending companies in the UK that offer short-term loans.
Meanwhile, choosing the one that works for you goes beyond comparing APRs – you also need to think on all the smaller details. Will they allow you to change payment schedule as you go? Will they charge fees upfront, or late fees? Are their interest rates fixed, or do they have a method for you to gradually lower your rates? Do they offer instalments, or just one lump sum?
By taking these questions and more into consideration before you get your short-term loan, you can get the best deal and the loan that works best for your situation.
#4). Beware of contingent or conditional loan terms
If you finance through a dealer, make sure the terms are final, not contingent or conditional, before you sign and drive away. Under a conditional sale agreement, the dealer would pay for the vehicle on your behalf and allow you to pay for it in instalments.
This type of agreement usually require you make a deposit to take possession of the vehicle, but it would still be legally owned by your dealer until all payments had been made.
All too often buyers are told days or weeks later that their monthly payments or the required down payment has been increased. This is why you should make sure that the terms are final.