In case you are looking to buy a car with credit score between 500 to 600, you may be feeling defeated by all the rejections you have been getting from all the local banks, auto dealerships and even buy here pay here car lots with in house vehicle financing. Generally, these dealerships are not familiar in helping car buyers with damaged credit to apply for financing, so they may charge very expensive and unreasonable rates.
You are better off with lenders that specializing in giving loans to people with poor FICO score under 600. So where is the best place to meet such lenders with no credit check or easy requirements? Actually, it is very convenient to get and compare auto loan rates online. You just get online pre-approved loans to buy a car from these lenders yourself, then go car shopping at the dealerships with your check. In some situations, you may even be able to buy a car with little or no money down.
Although it is not possible to qualify for a $50,000 luxury car loan, buying a cheap or used vehicle with 60 month installment pay back is quite manageable even when you have poor FICO credit score under 550. Yes, other from the banks and credit unions, there are legit online car loan companies that provide financing to buy a cheap car with no credit check or minimum FICO score. You just need to be above 18 years old and have a stable job or income more than $1500 per month.
You can qualify for bigger loans to buy better cars and trucks if you have a higher monthly salary despite having damaged credit. When you have a previous repossession, it has to be at least more than 12 months before you stand a chance with any type of vehicle financing. For car buying after bankruptcy, it must be fully discharged and you have no more obligations towards any of your past creditors.
Note that an exception may apply here. When a chapter 13 bankruptcy is involved, you will find some lenders that can approve a new car loan provided you have expressed permission from the court. That is the best way to get an auto loan for bad credit after chapter 13 bankruptcy.
Generally, lenders are less strict with minimum credit to finance a new car purchase. The loan is secured by the vehicle itself, which they can also repossess in case you default. That is why buying a car with poor credit is easier than getting a new unsecured credit card after bankruptcy.
You can find car loan lenders that will give you a loan to buy car with bad credit. Just compare the rates and choose which one you apply for a pre-approved blank check to be mailed to you within 1 business working day.