You may have had all intentions of keeping a good credit score, but along the way, life can happen and leave you with things in your credit history that prevent you from going anywhere you want to get a loan. When you are in need of a new vehicle, your poor credit history can haunt you worse than just about any other time. However, even with credit that is not considered good, you do still have options which may be available if you need a new ride. Here's a look at some of the financing options you may be able to obtain if you have less-than-perfect credit.
Buy Here Pay Here Auto Loans
If you are pretty certain your bad credit will prevent you from getting a loan in the traditional way with a bank or finance company, it is a good idea to check out buy here pay here car lots in your area. These car lots offer financing privately, which means credit checks are often not even involved in the approval process.
The good? Buy here pay here car loans are pretty easy to get, usually only requiring that you have proof of stable employment.
The bad? Buy here pay here loans may involve high interest rates and you may only find a limited selection of vehicles through a seller who offers this form of financing to customers.
Bad Credit Auto Loans
Some car dealerships have what is simply referred to as a bad-credit car loan. These loans are typically offered by financial institutions specifically to fill the need for people like you who lack the credit to obtain a traditional loan.
The good? These loans make it possible for you to get a loan in spite of bad credit for a pretty decent vehicle.
The bad? You may be required to make a substantial down payment before obtaining the loan and will likely have high interest rates. Plus, these loans may not be obtainable if you have had a repossession or recent bankruptcy.
Guaranteed Approval Auto Loans
Of the three choices you have with bad credit when you need auto loan financing, guaranteed approval is perhaps the most desirable. Guaranteed approval loans are also offered by financing companies, but some form of loan is almost always offered regardless of how bad your credit may be.
The good? These loans are extended to people with even the worst credit, even those with bankruptcy or repossession on their record.
The bad? Guaranteed approval auto loans can be hard to find because they are only offered by a handful of lenders. Plus, your payments may be a bit higher than what they would be with a standard loan.
For more information, contact companies like Leopardi Auto Sales.
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