Second Chance Car Loans to Get Your Credit Up
If you have a bad credit rating, second chance car loans may be the best option for you. There are few car dealers who are willing to take the risk on people who have a bad credit score. Even if you are now in a better financial situation, auto dealerships will most likely not grant you a loan.
Vehicle dealerships do not have much choice when it comes to selling cars to people with low or bad credit.
The best option for anyone with bad credit is to investigate second chance car loans. These loans do not include a look into the past but into the future. They establish what your financial situation is now and offer you the chance to buy a car from any dealer you want.
Table of Contents
- Second Chance Car Loans to Get Your Credit Up
- Why Choose Second Chance Car Loans?
Second Chance Auto Lender, Defined
A second chance auto lender looks at the present rather than the past. Instead of looking at your bad credit score, they look at your income and job status as it is now.
Second chance car loans are great for those who have a bad or no credit score. Car Loan Cash Now offers loans to people who have a bad credit score but are in a better, more stable situation now.
Second Chance Car Loans to Build your Credit
Getting an auto loan and sticking to the payments can get your credit score back up within a year. Second chance car loans are perfect for those who have a bad credit score and need to fix it. These types of loans are also great because you can still choose the car you want. Second chance car loans do not limit you to specific dealerships or cars.
What is Bad Credit?
Bad credit is when you fail to pay back a loan over a length of time. This could be as small as missing a few payments on your bills, credit card or car loan. Although bad credit starts small, it often escalates into situations where people end up with debt. This debt is called being part of “the bad credit cycle”.
It is simple: when you miss too many payments, your bank or loan company stop lending to you. In this situation, it is often quite hard for people to resurface and get back on their feet. The harsh truth is that many companies will not lend to you again until your credit score rises. Second chance car loans approve your credit and allow you to rebuild your credit rating. All this while being able to choose your dream car. Note: it is important to always go with a reputable car loan company.
The Problem of High Rates
Second chance car loans do still include higher interest rates. The difference between 2 and 3% per payment may not seem like much. But, an extra $15 to $20 a month adds up and this can be strenuous for those in financial hardship.
People with bad credit scores do not just have difficulties when buying a car. These problems occur with many other situations. Examples include: applying for a credit card, getting the electrics turned back on or just putting a deposit down for something. On top of this, rates are higher for people with a bad credit rating. They are often forced to pay more on the interest of their credit card and mortgage as well as other loans.
Used cars, vans, and trucks are more expensive than ever. Second chance car lenders appreciate that people still need to be able to get from A to B. Thus, they offer second chance car loans to help people get their credit rating back up.
Get a Helping Hand
When people find themselves in a tricky financial situation, everything can get overwhelming. When someone misses one payment it often means they are going to miss more. This means their credit rating will get lower until companies stop lending them money altogether. When someone gets trapped in this cycle they have to pay more fees, charges and this becomes a vicious cycle. Second chance car loans enable people to get back on their feet without paying high interest rates.
Why Choose Second Chance Car Loans?
Although your interest rates will be higher than normal loans, second chance car loans are a great way to get your credit rating back up. This applies even if you have just declared yourself bankrupt. The process is simple: get your loan approved and make the payments on time. You have the choice of refinancing your current loan or getting a new loan.
There is a key difference when choosing among second chance car loans. Your behavior towards this loan is taken into account and this goes towards building your credit rating back up. Unlike paying your rent and bills on time, paying back your car loan is registered and reported as good behavior. This is recognized by the credit bureaus.
The interest on these loans does take time to get lower. But, within a year or two, you can build your credit rating back up and then refinance your car loan. Second chance car loans are a great way to get back on your feet. You will pay off your debt, get your credit rating up and slowly pay less interest each month. The opportunities are endless. With a better credit rating, you can apply for a mortgage, credit card and even refinance current loans to get better deals for future payments.
Who Can get Second Chance Car Loans
At Car Loan Cash Now we are used to working with people who have a bad credit score or no credit score at all. We are not interested in what happened in the past. We want to see that you are back on your feet now. This means that instead of looking at your credit rating we want to see that you are getting regular paychecks, are able to pay your bills and so on.
If you have a history of paychecks that equate to more than $1,500 a month and you’ve been able to pay your bills, you are in for a good chance of getting a car loan even with a bad or low credit rating. If you want to be 100% sure to get the loan, you could get a co-borrower to partner with you to apply. With all this information and a detailed and completed application, we can match you to the perfect lender. This will allow us to get you the best loan and interest rates.
Do your Research
Second chance car loans are great but it is important to do your research before jumping in head first. There are two types of second chance car loans. These include those that you can get from a financial lender and those you get from a dealership. Dealerships may offer you a service called Tote The Note or Buy Here Pay Here. These types of loans often take advantage of your bad credit rating and sell you low-quality cars with high interest rates. Aside from this, your credit rating may not go up as many of them do not report to any of the credit bureaus.
Car Loan Cash Now reports to all the major credit bureaus so that you get all the benefits from getting a second chance car loan. With this, you will be able to get future loans from other companies. Your credit rating will show that you have turned your financial situation around and have got back on your feet.
If you are set on getting your credit rating back up, you need to find a company that will give you a chance. At Car Loan Cash Now we know that getting your head back above water can be a long process. This is why we work with people, who, like you, want to build their credit rating back up and be given a second chance to make things right. To find out more about second chance car loans, contact us today.