Ready to purchase a car, but not sure if you will be approved for a car loan? Your credit score plays a major factor in getting approved, and while it may be tough, it can be done. Here are some tips on how to get a car loan with poor credit:
Work on your credit before car shopping
Check your credit report as soon as you start thinking about buying a car so that you can see where you stand and can take steps to clean up your credit. By cleaning up your credit before making your purchase, you improve your chances of getting approved with good rates and terms. How can you start cleaning your credit? You can start by paying off past-due accounts and disputing credit report errors.
Make a big down payment
The bigger the down payment, the less you will have to borrow. While your credit will limit the amount of your car loan, a down payment can offset the interest, taxes, and fees and widen your selection of cars you can choose from. If you need help, here are 3 money-saving tips when buying a car that could help.
Skip all the bells and whistles
Depending on the loan amount you are approved for, you may not be able to get all of the extra features you want in your car. Features like leather seats, sunroof and premium sound system may not be options when you’re trying to buy a car with poor credit. Consider what you actually need from in your car because these features can cost a pretty penny.
Check current interest rates
To have a better idea of the interest rate you can expect, you will want to check the current average auto loan rates. With poor credit, you’ll typically have a higher interest rate and that rate will affect not only the monthly payment but the price tag of your car, too. Also, beware of loan rates that are more than double the average. At Camino, our Member Advisors are aware of average auto loan rates and can assist you in getting the right loan for you.
Get pre-approved
Getting pre-approved before you go to the dealership allows you to see what you have to work with. At Camino, we’re here to make it easier for you to make your car purchase. We can offer great rates and loan amounts up to $30,000 to help you purchase a car that suits your budget. Our Second Chance Auto Loan Program is designed for our members that have less than perfect credit. We give approved members up to 72 months to repay the loan with no penalty for paying it off early.
If you’re ready to start car shopping, stop by one of our branches and sit down with one of our Member Advisors. They are able to assist you with your budget, terms for pre-qualified auto loans and more. Request a Phone Call from us today!