29 May 2017
How To Get Auto Finance Despite a Bad Credit History
Auto financing or lease approvals can be challenging and disappointing if you have bad credit. It limits your options and chances to get manageable terms. Rent 2 Own Cars exclusively work for people and provide car finance for bad credit in a convenient and hassle free manner.
This article talks about how you can avoid rejection and drive off with satisfying deals.
Step 1: Know your current financial state.
a. Get your credit count and report. Most large banking companies entitle their clients to one free report each year.
b. The reports should be clear and detailed. It should include all previous and current accounts, transactions, mortgages, loans, leases, and the like.
c. Your undesirable histories should also be reported. These are missed payments, late paid transactions, repossessions, foreclosures, and bankruptcies.
d. Credit scores are estimates between 300-850 that puts together a summary of your history. These can be requested from banks for a fee.
e. Lending institutions may ask you for both scores and reports. It would be wise to have these two prepared ahead of time.
f. Low scores are often the result of late payments, debts, and bankruptcies.
Rent 2 own Cars do not care about your Credit Rating only your ability and commitment going forward to make the loan payments
Step 2: Improve your scores.
a. Try to check whether all information that is included in the reports are correct. Mistakes are common, and this could lower your rating.
b. Pay past-due accounts, debts, and missed payments. No matter how small your debts are, these could still contribute to negatives on your reports and can have an adverse impact on scores.
c. Doing some "cleanup" by paying off past dues may help you save money later on down payments and interest rates when you apply for a car loan or lease. It can present you with better options that can help you maximize savings.
d. Do not approach lenders immediately after your cleanup. Wait at least six months after cleaning up your reports before approaching lenders and vehicle dealers. This provides enough time for your banks to make updates and scoring improvements.
Step 3: Set expectations.
a. If you still have poor scores after a cleanup, expect to have higher rates of interest and larger advance deposits. You may also be required to present a security deposit for leases.
b. Do not be disheartened, however, since an extremely low score can still get accepted at certain dealerships. Despite your history Rent 2 Own Cars will do their best to help you get a car that suits your budget and on your way to repairing your credit rating.
Step 4: Prepare your budget.
a. Experts advise that all auto-related costs should not exceed 20 percent of your monthly income.
b. Choose cars that fit your budget. If you want a specific model but it costs a lot, you can try leasing it or getting a used one.
c. Shelling out larger amounts on down payments can help you get better interest rates.
Step 5: Approach lenders.
a. Find lenders that can deal with your credit scenario. Rent 2 Own Cars CAN !
b. Ask your bank or lenders for solutions they have for those with a problematic score.
c. You can try looking for cosigners for better deals. Ask members of your family or a friend who might agree to cosign to help you get your desired auto loan.
d. After all these, you can already approach a reliable dealership place and negotiate a good price based on your loan or lease options
Rent 2 Own Cars specialize in helping everyone with bad credit