Buying a car with bad credit seems like a daunting task.*
But like anything, preparation is key.
With competitive rates and a quick decisioning process, RoadLoans can help you get your new car, with less hassle.
Here are 5 obstacles that can occur when buying a car with bad credit and how RoadLoans can help you get around them.
Not enough money down.
Solution: Save some more and then apply again. Start saving up to add to your current budget, and consider re-applying when you have reached your goals. Lenders are often willing to wait for you and help place you in the most appropriate finance program available. If you’re in need of a car sooner than later, shop around for cars that better fit your budget. Look at pre-owned over new and older models over newer. Nonetheless, give yourself some time to consider your options.
Fear of rejection.
Solution: If you have bad credit, or even no credit, you may feel like you have very little chance of getting auto financing. The good news is RoadLoans has experience working with all types of credit.
Trouble getting approved.
Solution: Try using a co-signer. Ask a family member or friend with a good credit score to help you out. They can help back your purchase and give the bank or loan originator more faith in your ability to repay the loan.
Only looking at one dealer.
Solution: Find loans elsewhere. At times, a dealer may seem like the best option, but look around to outside sources. This can help you make the best, well-informed decision and prevent returning to the dealership with more conditions on your loan than you previously were aware of.
Not seeing the big picture.
Solution: Look at loan plans as a whole to find what fits your needs. Don’t be deceived by lower monthly down payments. For customers with low credit, these deals may seem like better options, but tools such as a loan calculator can help you take the time to assess your budget and calculate what loan plans fit with your lifestyle.
Don’t let bad credit get in the way of you and your desire to buy a new car. Research RoadLoans and see if they can help you avoid any number of potential obstacles when buying a car with bad credit. Avoiding these obstacles can help turn your car-buying experience into a positive one.
* “Bad” or “Poor” credit generally is considered a FICO score around 600 and below by sources including the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press), Bankrate.com, Credit.com, Investopedia, NerdWallet.com and others. The Congressional Budget Office identifies a FICO score of 620 as the “cutoff” for prime loans. FICO scores are not the sole factor in lending decisions by RoadLoans.com and Santander Consumer USA.Written by: