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Getting a Binbrook car loan with bad credit

Getting a Binbrook car loan with bad credit

There are some easy-to-follow suggestions you should stick to when trying to get a car loan with bad credit. Lenders have become more conservative when underwriting car loans, so you will need to have all of the right documents in place.

That’s what our Binbrook auto loans team are discussing today. We’ll share some actionable tips for accessing car loans when you have bad credit.

Reviewing your credit score before you do anything else

Start by accessing your credit score for free online, you can visit Equifax or TransUnion. These websites offer free access to your credit score and credit report.

You should request copies from both firms, so you have a clear picture.

The current minimum credit score for a prime interest rate car loan is 680 and the minimum threshold for a car loan is 620.

You may be able to get a car loan in Binbrook with a score under 620 but the finance costs may be prohibitive.

Lenders want to look at your income to see whether you are bringing in enough money to pay your current debts. The current maximum debt-to-income ratio that lenders use is 40%.

If you make $3,000 per month then your total debts cannot exceed $1,200 or 40%.

The only way to properly document your income is by providing copies of your latest salary slips and income tax assessments. If you have more than one source of income, it would be smart to bring along your bank statements.

Dealing with your credit problems

We will show you how to get a bad credit car loan in Binbrook but it would be prudent on your part to analyze the cause of your credit issues.

When you are reviewing your credit report, look for any accounts that are either late, past due, or worst of all, in collections. Your payment history is the single biggest influencer when calculating your credit score, so make it a priority to pay all of the accounts that are past due or in collections.

By always making your payments on time, your credit score will start to rise over time. But since you need to buy a car today, the pressure is on to find a lender ASAP.

How to get a bad credit car loan in Binbrook

We touched on how you can fix your credit score by making your payments on time. But now we are going to shift focus and show you how to get a bad credit car loan.

You will not find lenders online that specialize in these loans. The only way you will be able to get a competitive car loan is by visiting your local car dealership.

The local dealerships have access to lenders that cater to borrowers with credit issues. These lenders have to charge a higher interest rate because of the greater risk associated with the loan.

Not only can the dealership get you approved for a loan today, but they will also show you ways to boost your credit score so in 1 year from now, you can refinance your current car loan into something that is more competitive.

With the shortage of cars in the marketplace, you really do need to act fast if you want to get a car.

When you’re ready for a car lease or loan, get in touch with the Binbrook auto loan experts at Northway Ford for great deals on auto finance.

Categories: Car Loan

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