Bad credit doesn’t mean you can’t buy a new or used vehicle. There are lenders who specialize in this market without charging borrowers an arm and a leg. Who should consider taking out a bad credit car loan instead of the alternatives?
You’ve Found a New Job
When you don’t have an income, it is hard to pay your bills. Sometimes you prioritize paying the rent and putting food on the table over paying the car note and credit card bills. Your credit takes a hit with every late or missed payment. Once you’ve found a new job, you have income coming in. Suppose you’ve caught up on your bills and started paying down your debt. Yet your credit is a mess. Visiting this website will help you with your car loan shopping needed. They will use your current income and debt load when determining your eligibility, not your credit score or short-term financial problems.
You’re Rebuilding After Bankruptcy
Bankruptcy is the worst thing that can happen to your credit. Most lenders will treat you as if you are radioactive. They won’t want to deal with you for years. Yet your bankruptcy could give you a financial fresh start, allowing you to clean up your debt and get your financial house in order. Perhaps your small business failed, but you’re now working for decent pay with a new employer. Or you had to go through bankruptcy after going through a divorce, but that mess has been cleaned up. Big banks are going to charge you an insane interest rate if they are willing to offer you a car loan at all. A lender who specializes in bad credit car loans will take the time to evaluate your financial health now and offer you a loan at a reasonable rate.
You’re Just Starting Out in Life
If you are just moving out of your parent’s house, you either have no credit or bad credit. You have no credit history if you don’t have a bill payment history or any well-managed loans in your name. You have bad credit if you were late making payments on your first credit card or managing other loan payments. For example, not knowing that you’d be hit with an annual fee for that store credit card can result in a ding on your credit report. If you were late paying your car insurance bill or other major expenses due to a failure in communication, this hurts your credit, too. This can lead you to a lender who offers bad credit car loans, because other lenders will charge you a premium to do business with you.
You Went with a Bad Debt Consolidation Firm
A dirty little secret about debt consolidation firms is that they often kill your credit in the name of convenience. They sometimes tell people not to make their payments so that the creditors settle for less than what is owed. This may result in a lower payment for the reduced amount or a single final payment to get rid of the debt, but the charge-off of the debt is one of the worst things you can have on your credit report. If they told you to stop paying your bills and stockpile cash so you could settle bills in collections, then you aren’t going to be eligible for a conventional car loan for years. Only firms that specialize in bad credit car loans will talk to you, and they’ll want to know what happened before they loan you money.