You must have seen this sign probably a dozen times saying “Bad Credit? Not an Issue. GET YOUR CAR TODAY”.
A credit score can have a significant influence when it comes down to lenders deciding what interest rate should be suitable for you. You need to check your credit report from different credit bureaus before you start looking for a car to buy.
Even if you have bad credit, getting a car loan is still a possibility. Just because you have been turned down by another car dealership doesn’t mean you can’t purchase a car. For instance, 500 Below Cars specialize in bad credit in house financing going off of stability and not your credit score. We have a highly detailed and thorough process of checking our client’s financial condition and their ability to pay with affordable loan terms. Take it from us, if there is even the slightest possibility for you to get a vehicle, we promise to get you a car loan with bad credit. Get pre approved with our in-house financing application.
While we wouldn’t recommend you to go straight to the dealership asking for financing, getting a loan from a reputed lender can actually help you improve your credit score overall, if you’re able to pay properly and also pay bills on time.
We at 500 below cars treat our customers with the respect, level of service, and transparency that you rightfully deserve. We don’t judge your credit performance. We believe in adding dignity to the process of Buy Here, Pay Here dealership. While others may not be on your side on this one, we treat everyone equally, and we want you to have a car of your own.
Let us give you some pointers on how you can get a car of your own even if you have bad credit, low credit, or misunderstood credit.
Check your credit
It may sound a bit confusing as you already know that you have bad credit. But sometimes the case is you might think you have bad credit because you have overextended your budget or have been late numerous times on making your monthly payments but, it is essential that you don’t make a decision simply based on assumptions.
Save up money
Financial safety offers a great sense of satisfaction. You need to have some amount saved as an emergency fund, just in case. Also, to have a small down payment is always a plus. These savings can help in reducing your installments while your loan payment is in process. A bonus feature of having some amount saved is that you can get a lower interest rate on finance. Even better is shopping with 500 Below Cars where you can pick your payment from $300, $400 or $500 a month on a vehicle with completely transparent pricing.
Check the latest interest rates
Before you buy a car, we suggest you check online for the most recent loan rates being offered in the market to better understand what to expect. The purpose behind this is simple. If you had good credit, then you would be able to get a better rate, maybe even below average. If you have bad credit, your interest rate would be higher than usual, might be double to the average.
Your loan rates determine how much you’ll be paying on a monthly basis but also the price tag of the car you can purchase.
Know the application process
Do you know, charging customers for auto finance application is illegal? The process is free for all. However, most people are unaware of this, which leads them to pay some hefty amount before car purchase.
If payment is expected before the approval, it is a clear indication of a red flag. In this case, try not to reveal any financial or personal information.
Find a suitable leader
If you need a car and your credit score is lower than 500 or 600, then there are a few options that can help you finance your vehicle. Finding the right kind of dealer can take some time but will be totally worth the wait.
You need a dealer than can handle a huge loan. Depending on your credit situation, you will have multiple choices. Another option for you can be securing a loan through a bank. Many banks have their connections with dealers, and you can also ask them for a favor.
Even if you have bad credit doesn’t mean you can’t afford to buy a car. But it is important that you don’t overestimate yourself. Evaluate your current position and see if you can handle such an investment.
Consider how much money you would be left with after you buy a car because you also have to pay your bills every month by looking at your payment history. After deducting all the key expenses, the amount you are left with should be your budget.
Even if you are approved with bigger payments, stick to your budget, and only go with what you can afford.
When you are purchasing a car and have bad credit, then you might not get a huge amount on your loan, which means that you might have to make some sacrifices. Sunroof, premium sound system, leather seats, and many other options increase the value of a car by a considerable margin. You already have a high loan payment to make because of the interest rate. Don’t add pressure on yourself by adding these features.
Why purchase cars from 500 Below?
We are a buy here, pay here dealership, we are different from the traditional dealerships that you see making empty promises. We provide in-house financing to our clients. We bring our customers easy approval for people who are unable to get themselves qualified from a traditional finance company or a bank due to several issues such as bad credit history, job instability, income, low credit score, etc.
In other words, as a buy here pays here dealership, we help customers who need a car when traditional dealerships are not helping.