Get a good deal on bad credit car financing
Few purchases are more exciting than a new car, and few are more expensive. If you have less than perfect credit, as so many people do today, it can be intimidating to think of applying for an automobile loan. The good news is that today, partly because of the declining economic conditions we’re experienced over the past few years, it’s easier than ever before for people with bad credit to qualify for car loans. Your credit score does, in fact, play a significant role in determining the interest rate on any money you borrow, but in most cases, poor credit doesn’t mean that you can’t qualify for a car loan.
At Car Deal Expert, we work with lenders who specialize in bad credit financing, and when you apply, we’ll match you with the lender offering the best interest rate for your particular needs and qualifications. We can’t promise that we’ll be able to find a loan for every bad-credit situation, but no matter what kind of credit you have, we’ll do our best to find the loan you need to buy a car.
Some general guidelines for bad credit car finance
Credit guidelines vary from lender to lender, but certain generalizations can be made. In order to borrow money, you must be an adult and you must have a valid social security number. All lenders will have minimum monthly income requirements, and $1,500 is customary, but some lenders may require as little as $800. Generally, you have to be employed at your current job for a certain amount, which can vary from three to six months.
If you’re self employed or have other regular income from a source other than an employer, you may also be able to qualify for a car loan. You can have bad credit and still get a loan, although different lenders will have different credit standards. In general, however, you must not have had an automobile foreclosure within the last 12 months and you must not have any bankruptcy cases currently pending.
Car Dealerships don’t offer the best terms for bad credit auto finance
Car Dealerships sometimes offer financing for bad credit customers, but they don’t generally offer the best deals. Their interest rates aren’t usually comparable to the rates you can find online at Car Deal Expert. When you finance through a car dealership, the dealer makes a profit on the loan as well as the car itself. The higher your interest rate, the more the dealer stands to profit on your loan. Just a small difference in an interest rate can make a huge difference in the amount you ultimately pay for a car, so it pays to shop around.
Get preapproved at Car Deal expert before you shop for a car
There’s no cost or obligation when you apply at Car Deal Expert, and whether or not you accept the financing offered by any lender we match you with is entirely up to you. It takes just a few minutes to apply, and doing so can save you a surprising amount of money. Having an independent loan preapproval when you visit a dealership will also make it easier to get the best possible purchase price on the car of your choice. When a dealer sales person knows that you have your own financing, he or she is less inclined to get you to spend more than you stated limit, and it’s easier to negotiate about the purchase price when the dealer knows you’re prequalified for a loan and serious about buying.
Remember, a low monthly payment is only part of the story
If, after getting preapproved for bad credit car financing at Car Deal Expert, you decide compare your preapproval to any financing the dealer may offer, remember that a low monthly payment isn’t the whole story. Sometimes a dealer will try to persuade you to accept its financing by offering you a lower monthly payment stretched out over an extra-long loan term. Keep in mind that the longer it takes to pay off a car loan, the more the car ultimately costs. Don’t just compare interest rates. Instead, look at the dealer’s Truth-in-Lending disclosure, which will show you how many loan payments you’ll make and what the total cost of the payments will be.
Find the rest of the story on your Truth-in-Lending statement
The Annual Percentage Rate (APR) shown on the Truth-in-Lending disclosure will be higher than the interest rate and will show you the actual cost of financing the money loaned. Dealer’s frequently have extra fees that the law requires be added to the interest rate in order to show the actual cost of the credit. So pay attention to the numbers shown on the Truth-in-Lending disclosure, and remember that a monthly payment can be lower even if the interest rate is higher, if the loan term is longer. An extra-long loan term will almost always mean that at some point you’ll owe more on the loan than the car is worth and you’ll have difficulty selling it unless you’re prepared to pay of the remaining loan balance in a lump sum.
Get the best deal on a car by getting the best loan available for bad credit
When you look at your Truth-in-Lending statement, you’ll see that your car loan has everything to do with how much you actually pay for a car. The numbers, totaled up over the course of the loan, can be very daunting, so it’s important to get the best loan possible, no matter what kind of credit score you have. At Car Deal Expert we have a network of very competitive online lenders that enable us to find you the best deal possible on a loan for bad credit. Once we find you a lender, we’re out of the picture and you work directly with the lender.
Our only goal is to find you the best possible loan
Unlike a car dealership that stands make more when you pay more for a loan, At Car Deal Expert our only goal is to put you in contact with the lender offering the best loans for your situation. We don’t make money by marking up someone else’s interest rates. It’s quick and easy to apply at Car Deal Expert today, so apply today and let us find you the best possible loan, regardless of your credit history.