Where is the Best Place to Get a Car Loan With Bad Credit

So where exactly is the best place to get a car loan when you've got bad credit?

First of all, you certainly want to avoid the following...

Avoid Buy Here Pay Here Dealerships. These types of establishments that offer in-house financing charge extremely high interest rates, price their cars at retail or above, and generally always want a down payment. This is not the best place to get a car loan and certainly not if you're wanting to save money. Buy a car from one of these places and you'll be paying not hundreds, but thousands of dollars more for finance charges than you have to.

Avoid Dealer to Dealer Hopping. Don't go hopping from one dealership to another trying to get approved. So many people with bad credit do this and it leaves large numbers of credit inquiries on your credit report. Those inquiries stay on your credit report for two years and they show that you're having a hard time getting approved. When you go to a second or third dealership trying to get approved, the dealer can see the banks and loan companies that you've been sent to already and have been turned down. So, if you're doing the dealer to dealer hop, stop now!

Online Lenders Save the Day. If you have bad credit, the best place to get approved for a car loan is online. Now don't go entering your information into 15 websites. There are a couple legitimate sources on the internet that allow you to either search through a database of lenders. There are also sources online that will pair your credit history with lenders that are guaranteed to approved you. In my opinion, online sources are the best place to get a car loan if you have bad credit.

Where Can I Get a Car Loan

Many people ask, "Where can I get a car loan"? The answer depends on whether or not you have good or bad credit. Let's look at options for both.

If you have good credit...

Car Dealerships

Local banks

Credit Unions

Online Lenders If you have bad credit, then the best option for you is to use an online lender, as well. There are companies now on the internet that have special finance programs that base your car payments on your monthly income. It's very simple to get approved and a down payment is not needed unless the amount financed exceeds the loan value of the car. If you don't understand that, don't worry. They'll provide you with all of the information that you need. Sources are available online now, that were unheard of a few years ago. In fact, many people that have a bad credit rating, don't even know that these lending sources are available for everyone.

If you have bad credit, you would appreciate...

No money down

Great interest rates

Low monthly payments, based on your income

Being able to buy your car wherever you want to

Getting approved in minutes That's what some online sources provide you with, when you take action and ask for a loan. It should be clear to you, by now, that car dealerships are not the answer if you have troubled credit. Car lots are no more than middlemen that take your application along with the price of the car that you're wanting to buy and simply submit it to lenders. You can save money and time by doing this yourself, online. You'll also get approved, much easier.

Where Can I Find a Car Loan If I Have Bad Credit

Have you been told that your credit isn't good enough for a car loan and that you'll have to wait until your credit gets better? You're probably wondering if there is somewhere that you can go to get a car loan without having to fool with a car dealership finance department. There are places that you can go to get approved and it's much quicker and simpler than you may think.

Online lending services that are legitimate and reputable will allow you to find a lender that will give you a bad credit car loan. There is no hocus-pocus involved and it's not anything that's too good to be true. There simply are more lenders than there are car dealers for most communities and finding the right lender is what you should do.

You wouldn't go to a plumber if you had an electrical problem, would you? Of course you wouldn't. So why would you rely on a dealership that is geared towards helping people with good credit, get you an auto loan? Until your credit gets repaired and improved over the next few years, you need to find a good lender that specializes in helping people with bad credit, not good credit.

When looking on the internet, make sure that the lending source that you choose has a secure website, so none of your personal information can be compromised. You also should look for a site that has a high approval rating. Some get 99% of their applicants approved for an auto loan.

When You Can't Get Approved For a Car Loan Locally

When you can't get approved for car loan locally, it can feel like there is just know where to turn. This is common, so don't worry about it. There are lenders that can help you to overcome this. Without smoke and mirrors, legitimate online car loan companies can help you and actually do a lot more for you then you may be thinking.

With thousands of lenders in the United States, it should be easy to fathom that there are bad credit car loan companies that can help just about anyone, get a real car loan with reasonable terms. Finding them, can be a challenge if you don't know where to look or where to go.

Let's clear something up, ok?

If you have had a bankruptcy, yes... you can get approved. However, all of your court proceedings relating to the bankruptcy need to be completed. The meeting of creditors and the final discharge or dismissal needs to be taken care of, prior to your applying for auto credit through these lending sources.

Also, if you have had a repossession within the last year... it needs to have been included as a part of a bankruptcy. If it was outside of a bankruptcy, and was within the last 12 months, then you will not qualify.

Your income needs to be a solid $1700.00 a month or more, per month. This is your GROSS income before taxes, including all wages, tips, etc.

It's easy to qualify and you if you're used to dealing with typical car lots and such, you'll be pleasantly surprised at the interest rates as well as, the payment terms that can be worked out for you.

What's the Credit Score Needed For a Car Loan

Credit scores can be broken down into a few categories:

Prime

Good

Sub-Prime

Bad

Poor

So what is the actual credit score needed to get a car loan? 

The answer isn't quite that simple. Regardless of your credit, you can get approved for a car. It's just a matter of using the right lender that fits your credit situation. You can get approved based on your income through special finance companies that offer their services online. There are real and legitimate lenders online that cater to helping people of all credit scores.

It depends on the lender...

There are lenders that specialize in working with people that have prime, good, sub-prime, bad and poor credit. Finding the right lender is all that you need to get approved. There is no direct answer to the minimum credit score for an auto loan. All lenders are different.

Fortunately, if you have bad credit, you can get approved for a new or used car and your payments are based on your monthly income. It's very simple to obtain a car loan if you have a low credit score and getting approved with lenders that operate online is much faster than using a local bank, credit union or car dealership.

Believe it or not, new cars are just as easy to get if you have bad credit. It just depends on the make, model and the amount financed. If you can get approved easily for a $18,000.00 used car, it's even easier to get approved for an $18,000.00 new car. The minimum credit score to get approved through special finance online is 480. 

What Kind of Car Can I Get For $300 a Month

The advertising ploys of car dealerships have changed people's interests from the total price of the car to monthly payments. More people now are concerned about what their monthly payment is than they are about the total price of the car. Car dealerships would prefer that you have this perspective and that your focus be on payments, rather than price. So, "What Kind of Car Can I Get for $300 a Month?" is a tough question, but there are good tips I can give you to help you to make a smart decision.

First, take your mind off of payments. The first thing you need to negotiate and think about when your car shopping is the price of the car. It may be that you would be able to get payments that are lower than $300 a month if you focused on the price rather than the monthly payments. If you walk into a dealership and tell them that I will my payments of $300 a month, you may be thinking that they will have to lower the price to get your payments that low but in actuality, it may be that they have to raise the price to make your payments $300. The after member the car dealerships are in the business of selling cars at as high the prices they can because they are in a very competitive business and every customer counts when it comes to the bottom line. So put your focus on the price of the car first, then the payments will fall in line and maybe better than you expect.

To get lower payments, not only do you need to have a good price on the car, you also need to have good interest rates which can affect your payment tremendously. You can save money by checking online and getting approved for a reputable lending service.

Generally speaking, you can get a $10,000 car for $300 a month, depending on what your interest rate is and how long the cars financed for.

What is the Minimum Credit Score For an Auto Loan

Auto loan credit scores are calculated by the major credit reporting agencies using a sophisticated "algorithim". This estimates, based on statistical probability, how likely you are to repay your loan and make timely payments.

Credit scores are broken down into a few categories...

720 and above is Prime Credit

680 to 719 is Good Credit

640 to 679 is Marginal Credit

600 to 639 is Sub-Prime Credit

580 to 599 is Poor Credit

525 to 579 is Bad Credit

480 to 524 is Very Bad Credit

These basic standards are used by most major lenders that car dealerships send applications to. You may have heard of a "prime lender". This would be a lender that only accepts applicants with credit scores of 720 and above.

Just as there are lenders that specialize in "prime credit applicants", there are lenders that specialize in giving auto loans to people that have Sub-Prime, Poor, Bad and Very Bad credit score ratings. If you fall within this category, then the following will assist you in obtaining an auto loan.

For people that have between "very bad credit" and "poor credit", there are loan companies that are tailored to fit your needs. They will take more into account than just your "credit score" and will take into consideration all of your accounts. Rental payment histories and other factors can be used to establish credit with these types of lenders.

To qualify, you must...

Have a credit score of 480 or higher

Be atleast 18 years of age

Have a regular income, such as a job, SSI or Disability income

Bankruptcy, whether chapter 7 or 13, must be discharged or dismissed

Have a valid Social Security Number/ Be a U.S. Citizen

Your income must exceed your monthly bills, including your car payment

Have an amount equalling your first payment as a down payment

What is the Best Place to Apply For a Car Loan When You Have Bad Credit

Many people that have bad credit wonder where they should apply for a car loan. It's a common question and a big one if you don't understand the world of secondary auto financing. This article will explain a few key points to help you to get pointed in the right direction.

First of all, although it may be tempting, the best place to apply for an auto loan is NOT at a buy here pay here car lot. Dealerships that offer "we finance anyone" deals, are a ticket to be taken to the cleaners. The fact is, many people fall into the trap of thinking that they have to resort to using this type of car finance when that is simply not the case.

Secondly, applying at a local car dealership may only yield mediocre results. It can take a while for the finance manager to sort out the best lender for your loan. With the way that dealerships can add percentage points to your loan, it's definitely not the least expensive place to use.

Third, your local bank may allow you auto financing, but usually local banks work strictly off of the loan value of the car. Sales tax and any amount over the loan value will usually be your responsibility to pay for upfront with a down payment. With the way that the banking industry has been tightened up lately, it may not be your best option to use a local bank.

Finally, online loan companies may be the best place for you to apply, if you want the widest selection of choices. Having bad credit, you'll do better by applying with loan companies that are specifically geared to working with people that have low credit scores. Some are better than others, so make your selection wisely.

We Finance Anyone - Buy Here Pay Here Car Lots For People With Bad Credit

Everyone has seen it. Those signs in front of buy here pay here car lots that say, "we finance anyone". If you have credit problems, you may have thought about using one of these types of car lots to get financed. Is it real financing or is it just a bad deal? Let's look into buy here pay here and how it work for, and against you.

There is absolutely no benefit to your credit score by using a buy here pay here car lot. In fact, there's not even a real loan involved. Sure, you get to drive the car, but only after a substantial down payment is paid and you'll get the title once all the payments are paid directly to the dealer.

If you're thinking that you may be able to get a car at a buy here pay here car lot without any money upfront, you're thinking wrong. These types of car lots charge down payments and will work you for as much cash as they can get out of you.

The interest rates that these types of places charge are as bad as pawn shops. Worse than credit cards. Try 25% or higher. Most of your monthly car payment will go to paying interest on top of profit. Now you know the story behind those "we finance anyone" signs.

A better alternative that you can look into is online auto loans through reputable lending services that help people that have bad credit. There are good companies that can provide you with auto financing, based on your monthly income.

Ways to Get a Car Loan With Bad Credit & No Money Down

If you have bad credit you have probably been to more than one car dealership that has turned you down. This is very common that people don't accept the opinion of the first car dealer and so they go looking for a second opinion much like many people do with doctors. We just don't like to hear the bad news and were looking for someone that will tell us what we want to hear.

Here are three ways that you can get approved for a bad credit car loan without having to put any money down.

1) If you have a local bank or credit union that you have your checking account with, you may be surprised to find that they will actually offer you a car loans so long as, you have a reasonable average balance and don't ever have any overdrafts. You will have to have a stable place of residence that you have probably been added for at least two or three years, you will need to have been eager job for a considerable amount of time, and the price of the car needs to be within certain guidelines. These guidelines will relate to the loan amount. The loan amount versus the loan value. Getting a car loan with no money down using a local bank or credit union, means that you will have to find a deal on a car that is priced at or near loan value.

2) Buy here pay here car lots are not the cheapest place to buy a car, however financing is very easy. Some places do not even have a credit check and don't really even have any requirements whatsoever, other than having a down payment. The only way to avoid a down payment when buying a car at a car lot that finances their own cars, is to have a trade-in that is either paid off or has considerable equity. This is not the best option for you if you want to save money and get a good deal on a car, however, I mentioned this information in this article because buy here pay here car lots are commonly considered as an option when you have credit problems and need a car.

3) Online loan companies that are legitimate, can offer you finance saying with no money down and guidelines and lending standards are quite a bit different from those that you will find when using a local bank. These types of lenders work only with people that have bad credit, and are in business just to help people out there that have bad credit and can't get financed at a car dealership. This is by far the easiest way to get a fast approval, get lower monthly car payments, and a better interest rates. One of the great things about using a service like this, is that you can pick and choose what model and make of car that you want, without being limited to what just one car dealership has to offer.it is much easier to get a no money down car loan when you are able to shop around and find a good feel on a car. When you can do this you can find good deals and local classified newspapers, bargain hunters, and even on on line auction sites.

Warning About Buy Here, Pay Here Car Lots

Before you turn over your hard earned cash at a buy here pay here car lot, there are some things that you should know. This information will save you a lot of money, both right now and in the future.

You're paying too much.

There's no bank that's regulating how much the car lot is charging you for the car. In many cases, buying from a buy-here-pay-here car lot is resulting in you paying thousands more for a car than it could ever possibly be sold for at a regular car dealership. On top of that, you're paying thousands more in finance charges than you have to.

You don't have to use a buy here pay here car lot!

You absolutely don't. There are finance companies on the internet that specialize in helping people with horrible credit get into cars without even needing a down payment. You can save thousands of dollars on both the price of a car, your interest rate and your monthly payments if you just know what to do.

Regardless of your credit history... If you've had judgments, repossessions, bankruptcy or multiple bankruptcies, medical collections, tax liens, whatever. Who cares?

You can get financed and approved... for more car with lower payments. Lower payments are the result of a lower interest rate.

You know what the best thing about getting approved online is? You don't necessarily have to buy from a car dealership. Having an approval letter from an online loan company means that you can go car shopping anywhere you want, including shopping for cars in your local newspaper for sale by private owner, which saves you from having to pay sales tax!

Want Car Payments Under $100, $200 Or $300 a Month If You Have Bad Credit You Better Listen Up!

If you go into a dealership and the salesman or sales manager "works you on payments", you'll never know what you're really paying until after it's said and done. Many people try to buy cars based on monthly payments. $100, $200 or $300 dollar payments can be a $5,000, $10,000 or more car. If you really want to save money, you need to know what's going on when you're sitting down at the negotiating table at a car lot.

Getting a customer hooked on the monthly payment amount is very, very dangerous.

When you're presented with the first "numbers" that the dealer gives you, it will have an inflated down payment and monthly payment. When you initially object to the amount of the monthly payment, you're falling into the trap. The dealer WANTS you to get caught up in trying to get a lower payment, because as long as your not focused on the price and your trade-in amount, you're toast.

When you're focused on payments, the interest rate, dealer add-on fees, the length of time that the vehicle is finance for and the price of the car... all leave the picture.

You see, if a dealer presents you with a $350 a month payment, only to "reduce" it for you to $280 to "earn your business", has he really done anything for you? It seems like a BIG discount, right? What if instead of paying $350 for 60 months, the loan is changed to paying $280 for 72 months? Have you really saved any money with your "big discount"? I'll let you do the math.

There's more to negotiating a car purchase than just your car payment. Obviously, everyone has a budget to stay within, but the payments are the last thing that you should negotiate if you want a good deal.