Tips For Finding a Bad Credit Car Loan Under the CARS Program

Thinking about buying a new car under the government CARS program? If you are like many people with poor credit, buying a new car might seem like an impossible dream. There are ways to get a bad credit car loan, but you will have to be more flexible and shop around a lot more than a prime candidate with excellent credit would. If you plan ahead, getting a car loan with bad credit still is possible.

Before beginning your search for a bad credit car loan, make sure you understand and know your credit rating. Anywhere from 620-650 and below and you will fall into the sub-prime category otherwise known as poor credit. Once you know your score and have a copy of your report, make sure to go through all the items listed on the sheet to make sure they are all accurate. A poor credit rating comes from not following the loan terms on previous credit to the letter. While in the past companies were sometimes more lenient with late payments and what not, delaying reporting such minor offenses to the credit bureaus, this is less true in today’s economy. Even if your payment is only late by one day, this can have a negative effect on your credit rating. Contesting any mistakes on your credit rating before shopping for a car loan for people with bad credit will help improve your over all credit score.

Shop around for a car loan before going to the dealer or before requesting an internet quote on a new car. If you have horrible credit, you may be required to have a cosigner on your vehicle loan. By securing an auto loan from a bank rather than from the dealer, you can often save over 10 points or more in interest over the life of the loan.

While there are dealerships that specialize in making car loans for people with bad credit specifically, most of these dealerships won’t qualify for a discount under the CARS program. The CARS Act specifically applies to purchasing a new vehicle only while most dealerships that advertise for bad credit car loans sell only used vehicles. Unfortunately, if you are trying to apply for the government credit, you will not be able to use one of these dealerships.

Lastly, when you are applying for a car loan with bad credit, be sure to only submit your application to one financial institution at a time. Most people don’t know that by continuously submitting applications for credit to many different places at the same time, you will actually lower your overall credit rating. If you limit your submissions to one at a time, you may take a slight hit, but your credit score should rebound faster. Sending out to many institutions at once, on the other hand, will cause your credit score to take a much steeper dip. This will require you to do more shopping ahead of time and not to make a rushed decision, but overall will result in your getting a better financing plan for your new vehicle.

Understanding Bad Credit Military Loans

A bad credit military loan may be for you. Being a member of the U.S. armed services and having bad credit, you may qualify for a unique form of loan called the bad credit military loan.

Engineered expressly to address the special needs of military folks, these are loans to help them with their financial situations. Who qualifies? (Veterans may be eligible, too.) What steps must you take once you know your eligibility?

No Credit History Benchmarks

Bad marks on the credit history are usually the reason for loan rejection for both the military and the civilian populations. Most banks and credit unions have set rather high credit benchmarks when it comes to examining potential borrowers.

Rejected during the usual process, military members have the option of applying for a bad credit military loan. Lenders offering these special loans understand the unique sacrifice military life involves. In light of that, these special loans are set up to allow taking a loan and usually charging significantly less in interest rates.

Using Military Money

Lenders, once your loan is secured, have little interest in how you use the money. They are often used for debt consolidation, home improvement or car repair, or even for high-ticket items such as appliances or furniture.

Your interest rates will still be higher than those with good credit history, but they will be far easier on your pocket book than regular bad credit loans. Make a budget and see how much you have left over after you have paid your usual obligations. Can you afford another monthly payment?

Check Your Credit

The process of getting a bad credit military loan is relatively easy if your line up your ducks first. The better prepared you are, the quicker the cash gets into your bank account. Your first step should be to get your credit reports. You are allowed one free from each of the credit bureaus every year. You will know exactly how a lender looks at you as far as financial risk.

Most importantly, make sure of their accuracy. Errors are not uncommon. You should start the repair process immediately if you discover inaccuracies. The process could take as little as 30 days or it could stretch into months if you have somehow become the victim of identity theft. Make it known that there are mistakes and that you are in the process of correcting them.

Be Prepared

Although the application process is usually rather swift, it requires the completion of a simple form, you must have some documentation. You will need government-issued proof of identification, verification of your rank and salary, a bank account in good standing (usually checking with direct deposit) and proof of residency.

When you have gathered your documentation, and the review and verification of your credit reports have been completed, you need to shop around for a lender to fit your needs. Because there are so many lenders, you should be able to shop and find one who will lend you the amount you need, at a decent interest rate, and with repayment terms that are comfortable.

Internet Shopping

Use the internet to start your shopping. Simply punch Military Loans into your browser and you will be rewarded with many lenders who may be willing to lend money to you. You will even find brokers who will take your general financial situation and then come up with a list of lenders most likely to approve your loan.

As with any internet transaction, be sure the sites where you divulge financial or personal information are secure. Check that the lender is above-board. The Better Business Bureau online listings grade the businesses and also offer feedback from former customers. If things go well, and they probably will, you could have the money you need sitting in your bank account within 24 hours, sometimes sooner.

Car Loans for Those With Bad Credit – Finding One Not a Problem

Bad Credit Does Not Necessarily Mean No Car Loan

If you have bad credit and need a car loan, you will eventually find a lender. In fact, nowadays so many people have taken hits on their credit histories, lenders would be missing a large market if they did not make car loans to those with bad credit. Understand that you will be probably be paying higher than the standard interest rates because of your poor credit history.

Friendly Dealers Can Help with a Car Loan for Those with Bad Credit

Unless you have discovered a car dealer who offers car loans for those with bad credit at reasonable rates and does not twist arms, your best bet would be to get pre-approved for a car loan. Friends, family members or colleagues may know of a friendly dealer who cares about customers and offers a good selection of quality used cars. If that is not the case, start searching online for a car loan for those with poor credit.

Pre-Approval Prevents Getting Trapped

If you go car shopping with nothing but a small down payment and a bad credit report, you are setting yourself up to be trapped, especially by unscrupulous dealers. If you have found a car you like and then ask the dealer about a car loan for those with bad credit, you have put yourself and your finances into the hands of the dealer. The dealer may tell you the price for the car is higher for those with poor credit.

Doing You a Favor

Since you have already picked a car you like, the dealer can get away with telling you he or she is doing you a favor by financing your car since you have poor credit. Interest rates are probably going to be high enough to make a loan shark blush. Walking onto a car lot with a blank check helps put you in the driving seat when it comes to the usual negotiations. Always keep in mind that you are doing the dealer a favor by bringing him or her your business.

Improving Your Credit History and Gathering Documentation

One good point about getting a car loan for those with bad credit, is that it offers you a chance to improve your credit scores. If you make your payments on time and successfully see the car loan to maturity, you will have boosted your credit history. Gather your documentation. You will need some government identification (military identification, driving license, etc.), proof of a job and salary (pay stubs or direct deposit statements), proof of residency (utility bill or cell bill) and proof of a direct deposit checking account (bank statements).

Shopping Online

Traditional lenders such as banks and credit unions are going to be a tough source for a car loan for those with bad credit. They have tightened their lending qualifications significantly since the great recession. Many private lenders have stepped in to fill the lending gap and have set up shop online. The nice thing about shopping on the Web is that when you punch your browser with bad-credit car loan, you will be rewarded with many lenders willing to finance your vehicle. You will be able to pick four or five dealers with the best interest rates and most comfortable repayment terms. Start negotiating with each until you settle on one who is going to fill your needs in the best possible way.

Going to the Car Lot

Once you know how much you can spend on a car loan for those with bad credit, then it is time to visit a car lot. Be sure your car comes with a warranty and a current safety inspection. Once you have made a down payment on the car you want, you will be able to return within 24 hours to write a check and drive away happy.

A Bad Credit Loan is a Great Option For Those in Need

If you have ever been in a position where you could use some extra money but you know you have poor credit, then perhaps you should look into taking out a bad credit loan. These loans are designed for those that are suffering from less than stellar credit, and are looking for a way to obtain money. If you do have bad credit, there is a very good chance you have been turned down for a loan at your bank. With lenders available over the Internet, you now have a new opportunity to get the money you need without much hassle.

A New Lease On Financial Life

Applying for a bad credit loan basically gives you a new opportunity to get ahead with your finances. This is because lenders are there to offer a second chance to those like you in need of money. A bank or other large lending institution will easily turn their backs on you if you are applying for a loan with them. This is why lenders are turning up everywhere, with the loan you need without the burden of constant rejection. There are a great number of lenders in the market, all trained and capable of dealing with your personal and individual situation. The loan is made to offer you as much help as you can get, for what you actually need the help for. There may be many reasons for wanting such a loan, but the loan really differs little between lenders.

Shopping Around For The Best Rates

When you are applying for a bad credit loan, you are going to want to pay close attention to what the interest rates are doing during the week of your search for the right loan. The loans may be very similar in nature, but the rates can change at a moments notice. Generally the rates will be higher for someone that has poor credit anyways, but the rates should still be competitive and comparable. Taking the time to shop around will yield the best possible rates for you, and you will likely save money this way. You could easily save hundreds of dollars in interest alone, if you shop right and shop smart. Take your time, and view as many lenders online as possible. This will allow you to comparatively shop with side-by-side perspective. Shopping this way will allow you to see who has the best rates as well as who has the most flexible terms and conditions.

Credit Can Be Repaired

If you have taken out a bad credit loan, then you already know that you have some great benefits that can be had long after the loan is paid off. You will be on the right path to repairing your credit score, if you make the payments on a timely basis. This will help you in the future if you are looking at credit from other sources, such as department stores or auto dealerships. Taking out a loan like this is one of the best ways to get the credit you need when you have no credit to speak of. Take some time to figure out what the whole process is about, and see if this is something that could be right for you and your financial situation.