If you have really bad credit and need to get a car loan in Smithville, these tips will help make your life much easier.
Even if you were recently turned down for a Smithville car loan, there are options available. But you need to know where to look.
Taking a closer look at your credit reports
The first item is looking at your credit reports by signing up with TransUnion and Equifax credit monitoring services, which are free.
After you have signed up for these credit monitoring services, you must look over your credit report to see whether there are any accounts that are either past due or in collections.
If you have any negative items inside your credit report, it will bring down your credit score no matter how trivial they may seem.
Since you have really bad credit, you most likely have accounts that are either past due or in collections.
These negative items will stay on your credit report for seven years, so you need to deal with them right away.
Even if you bring these accounts up to date, it will take a few months before your credit score recovers, but you should get to work on it right away.
Preparing a budget for your new car
The average new car will cost you well over $50,000. You will not be able to get a new car loan with bad credit for that amount.
Your best option is a good quality used car, so you will need to prepare a budget to make sure you can afford it.
When preparing your budget, you must allocate enough cash to cover your current obligations; inflation is driving up the costs of everything, so you need to pay close attention to your personal bottom line.
Your average monthly car payment can easily cost $500 or more per month, which doesn’t cover the running costs of a newer vehicle.
One of the benefits of buying a used car is you do not have to worry about depreciation which is a big factor when buying a new car.
While preparing a budget, you also need to include an emergency fund; the pandemic has caused great uncertainty in the economy, so having an emergency fund is vital.
Where to find the best bad credit car loans
While lenders have turned you down on your own, there are lenders that specialize in providing bad credit car loans.
They do not market their services to the general public. The only way you can access these loans is by going through a local car dealership.
There are dealerships that focus on providing bad credit car loans; you will need to reach out to them today.
The dealership will let you know what steps you need to take in order to raise your credit score so you can get a prime interest rate car loan in the future.
These dealerships also have an inventory of cars that you can test drive; take your time test driving the cars until you find the one you truly love the most. Now that you know how to buy a car with bad credit, you should reach out to your local dealership.
Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you find a vehicle suited to your needs and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!