GREEN LIGHT AUTO CREDIT
Are you one of the many consumers
today who are challenged with a low credit rating? Do you despair of
ever being able to obtain green light auto credit for the car you
need to get to work and to run daily errands?
A car is a necessity. But bad credit is a serious issue if you are
trying to get an auto loan to finance a car purchase. Here are some
ways on how you can increase your chances of getting approved for an
auto loan even if you have damaged credit.
1) Meet eligibility requirements.
You need to realize that your credit rating isnít the only thing
lenders care about when they review an application. They obviously
know that you have some challenges with your credit report, or you
wouldnít have sought them out for a car loan.
Auto lenders also look at your job and income. They want to make
sure you are at least earning enough to make timely payments and
have a stable source of income. You can also ask someone to sign the
loan with you to minimize your being a high-risk borrower.
There are several lenders today, including banks, that are willing
to provide loans for borrowers like you. These lenders approve
hundreds of applications everyday despite the credit situation of
applicants. Donít be afraid of being turned down for a loan because
of your credit rating.
2) Present a financial plan to lenders.
Know your credit score and present to the lender how you plan to
improve your credit with a new car loan
. Lenders and dealers will like the fact that you know where youíre
going and how youíre going to get there. If having a car enables you
to pick up a second job, let them know.
But there are also bad credit auto lenders that are willing to work
out a financial plan with you. Here at Prescott Financial, we want
to help people not miss a payment and rebuild their credit. We do
this by creating a flexible payment scheme which suits their credit
situation and income.
3) Put some money down.
The down payment is never a small amount of money, especially for
people with low income or poor credit. But putting some money down
for a car increases your chances of getting approved for a car loan.
The ideal down payment has always been 20% of the purchase price.
But most buyers today make only around 10% to 11% on average,
Thereís no problem with that, though. A down payment tells lenders
that you are still capable to repay a car loan even if you have poor
credit. It also makes monthly payments easier, believe it or not.
The one thing you should never do, though, is skip the down payment
or resort to zero-down auto loan programs which do not really help.
4) Be realistic when you choose a car.
One of the many reasons why a borrower with bad credit does not get
an auto loan is an expensive vehicle. We at Prescott Financial
encourage our customers to choose a car that doesnít go beyond their
means. In this way, itíll be easier for you to pay off the loan on
time and improve your credit.
Choosing a luxury or sports car when you have bad credit will also
make your credit application less credible. And if ever a lender
agrees to finance your car, you might end up upside down on your
auto loan or in a situation where you owe more than your carís
5) Choose a trustworthy lender.
Just because a lot of lenders these days can provide auto financing
for people with bad credit doesnít mean you can choose anyone. Donít
be too desperate to forget about screening lenders. Keep in mind
that unscrupulous lenders and dealers continue to exist in the
Make sure that the lender youíll be working with reports your
payment behavior to the credit bureaus. Otherwise, nothing will
happen to your credit rating even if you always pay on time. Look
for lenders that are not in the business only to squeeze every dime
out of the customers. Trustworthy lenders want to help.