How to Get a Car Loan With Bad Credit
Getting a car loan with bad credit in the greater St Louis area may seem impossible, but it’s not. Those with less-than-stellar backgrounds see approval for car loans at poor credit car dealers frequently, and you can steer away from separate parties such as banks while taking care of everything in just one stop! You can start the journey to approval right here at Jim Butler Fresh Start, after sitting down and providing us a clear idea of your budget and preferences. This will ultimately guide us into locating the vehicle that is perfect for your needs, and we can alleviate some of the added stress caused by going back and forth between a lender and car dealerships that help with bad credit.
Credit scores are one of the factors lenders consider when deciding whether to offer you a car loan. FICO® Scores, one of the most commonly used credit scoring models, range from 300 to 850. On that scale, a score of 669 or below is considered fair or poor. With a score like this, you may not be eligible for all loans—but we will channel our years of expertise into seeing you succeed.
Steps to Take Before Applying for a Car Loan
1. We Check Your Credit Scores—and Work With you To Improve Them
A smart first step that we are here to help you with is checking your credit score. Generally a score of above 670 boosts you into the sphere of attaining a favorable loan, but there are all sorts of ways we can help you. One thing to realize is that many others who are sitting where you are now have reached success, and we can help you do the same. If you don’t need a car immediately, working on improving your scores before applying for a new loan may help you get better terms and a lower interest rate—which should save you some money. Here are a few tips for improving your credit scores and always staying ahead of the game:
- Pay all your bills on time. Also, pay off any missed or late payments or accounts in collections. Payment history is one of the most important aspects of your credit and is one of the best ways to improve your scores.
- Reduce your debt as much as possible. This not only puts you in a better financial position when applying for a loan, but it also improves your credit utilization ratio. Your utilization ratio is calculated by dividing your total revolving credit balances by your total credit limits. Experts recommend keeping your utilization ratio under 30%, or below 10% for the best scores.
- Take advantage of tools that we can show you: Since we have spent time maintaining the vehicles we have available, we are experts at finding the model that best fits your needs while also providing for you a hassle-free location to go through the lending process in the same place. To keep you in one location for the entire car-buying process, we are willing to give 110% of our efforts to provide a better future for you.
2. Make Sure You Have Enough Money for a Down Payment
If you can secure enough money for a down payment, it could yield you a better interest rate or shorten the term of your loan. Even though you may have poor credit, a down payment is available capital that will allow us to do everything we can to expedite the lending process. Saving for a down payment can be worth the effort as it is instrumental for opening up more viable options for you in the long run.
4. Know What You Can Afford
Everyone has their own personal limit that dictates what they can afford, and still be able to have a bit of financial flexibility every month. Once you have an accurate snapshot of what you can be responsible for, it is easier and more sensible to create a plan of action. Rather than have you experiencing traditional negotiations from a point of potential weakness with an outside lending option, we deliver the expected level of transparency and integrity that consumers demand in the current marketplace.
Options for Getting a Car Loan With Bad Credit
If you need a car immediately and don’t have time to improve your credit scores before applying for an auto loan, here are some alternatives that might help.
1. Consider Getting a Cosigner
Having a cosigner with good credit can increase your chances of getting approved for a car loan and may help us be able to secure a satisfactory interest rate for your transaction. When a cosigner applies for a loan with you, they are bearing the financial responsibility if anything were to happen with your prompt payment, which aids us in meeting your needs for a new car.
Because we as the lender has someone else accountable if you encounter any trouble on the loan, there is less risk involved and you’re more likely to be approved. Seeing a lower risk factor right from the beginning, we may also offer you a lower interest rate—which could save you thousands over the life of the loan. Being in a position as the lender and dealer, we are able to deal with the issue of a cosigner employing a level of efficiency that would be difficult for any competitor to come close to.
2. Benefiting From a Second Chance:
If you have already been turned down for a car loan elsewhere, we are still eager to help you find a way to make things better for yourself and your family with our expertise. 44 percent of consumers are currently dissatisfied with the amount of time they spend buying a car, and we strive to always help you across the finish line with rapid results.
We also recognize that today’s consumer demands continuity across various channels, and that we need to do our best to be poised and ready for information that will be pertinent to all aspects of your purchase. Issues such as divorces and medical bills can seem to drag you down when they occur, but they don’t have to always have to be the deciding factor when it comes to getting behind the wheel of a car new enough to be a life-changing benefit for you.
How a Car Loan Impacts Your Credit
Getting a car loan is a large and productive step when it comes to financial vitality and longevity. Making all your payments in a timely manner will boost your scores and render you eligible for many of the other good things in life that come with due diligence. We know from many notable market studies and “crunching the numbers” that dealer satisfaction influences a customer’s willingness to refer us to others, which secures our future and allows us to help many in the same situation.
Securing the Ultimate Fresh Start: If you have begun the research at home attempting to buy a car online with bad credit, you have learned that the objective to get pre-qualified will dictate what type of model you’ll be able to obtain. Jim Butler Fresh start is an ideal choice for anyone who in the greater St. Louis area who wants to get a new car that doesn’t have a spotless financial history. If you know that having a reliable new vehicle is going to be your key to vitality and productivity this year, Request an Appointment to start the process of securing the best car for you!