Car Credit is Available for Bad Credit

Those that have no credit score or bad credit score can still find car credit loans. This is true since almost a quarter of the American population have bad credit. Bad credit score are an accumulation of unpaid and overdue payments, foreclosures, vehicle repossessions, bankruptcy and credit card defaults. The credit score is dynamic and can become a good credit score if payments are completed in time. This process usually takes 2 – 3 years.

Pre-requisites to getting the loan for those who have bad credit scores

Most lenders including banks, credit unions, car dealerships and manufacturers of cars will extend car credit loans. These are some of the preconditions for those that have bad credit

Those that have a credit score of less than 600 should have a gross monthly income of $1500 or more. When applying for car credit loan, keep your income statements or salary stubs ready. Prior to taking the car credit, you should be able to prove that you have been employed for the last 12 months.

Those that are in Chapter 13 bankruptcy need to get an ‘Authorization to incur debt’ from the bankruptcy trustee. Those that have had vehicle repossessions wouldn’t be given car credit loans unless the vehicle repossession was a part of the bankruptcy procedure. Those seeking the car credit loans should be 18 years and above and should be residents of US or Canada. In many cases the car credit are given within 24 hours. Depending on each individual case you may even get the car credit loan without any down payment.

Other factors affecting the loan

However it’s important to remember that the car credit loans are granted on verification of employment and income. Other factors that affect the car credit loans are based on credit risk, the trade in value of the older car (including any existing loan that may exist), model of the car chosen (whether its old or new), down payment been made for the car credit loan.

Calculating the car credit loan

If you have excellent credit, then you may be offered extremely low and attractive interest rates around 6-7%, but if you have extremely bad credit scores, then you may be offered interest rates that are as high as 17%. There are a number of auto loan calculators that can give you an estimate of the car credit loan that you can be approved for. Use these calculators to find out whether you can actually afford the loan or not.

Getting pre-approved

Before actually buying a car, its better to be pre approved for a car credit loan. Stick to the budget that you have and choose a car that suits the loan amount. Don’t go over budget. Make your monthly payments on time and you can improve your credit score. This will improve your credit rating for the future. Improved credit rating for the future will help you to get an attractive rate of interest for taking car credit loans and other loans in the future.

Nations Car Credit is your best source for car credit or bad car credit loans online. If you have really bad car credit, bankruptcy, poor credit or a low car credit score we have car credit programs that can provide financing at low interest rates that will help you buy the new or used car you really want at payments you can afford.