If your credit score is less than perfect, you may be surprised to know that an incredible amount of people are in the same situation. It can make applying for loans a real hassle, as many lenders may not even speak with you, and the same goes for those without any credit built up yet. However, everyone needs a vehicle to get to and from their obligations as well as their jobs.
It might sound like something out of science fiction movie, but as it turns out there are options for car loans with bad or no credit. In fact, there are a wide variety of lenders who will be more than happy to work with you and help you to secure a loan with reasonable rates. Here’s where to look, and what you can do to finance the car you’re looking for.
It’s always a good idea to boost your credit score in any way possible before applying for a loan. Paying off any outstanding bills can really give your score the boost it needs if you find it is a little low. For those who have not built up credit yet, this next option is the perfect way to do it.
Many people overlook this fantastic lending option, but it happens to be one of the best out there. You will find lower rates at a credit union than you would a bank or private lender, and they are willing to work with those who have less than perfect credit to help get their scores back up. In most cases, you will need to become a member first, but you will find that there are benefits and discounts available to you for doing business with them.
The best part of any credit union is that they take your personal situation into consideration. Whether that is poor or no credit, a recent job loss during the course of your loan, or an unexpected tragedy that you have to deal with you can find a far more compassionate experience through these types of lenders. Plus, you can usually do your banking with them as well.
Since 2007, Lending Club has offered 36 to 60 month terms when borrowing a loan anywhere between $1,000 to $40,000. That is more than enough for the vast majority of vehicles on the market, and their loans are always flexible. On the downside, you will need a credit score of around 699 to pass their vetting process in most cases, so keep that in mind.
The minimum credit score required at Prosper is only 640, and they will allow you to borrow between $2,000 and $35,000. They have a handy app to help you stay on top of your finances, keeping track of your payments and your credit score at the same time. While joint applications are not allowed, many have found reasonable loans here despite their credit.
It is highly advisable to do a little bit of online research before you begin your journey. With sites like creditkarma.com you can check your score for free to know where you stand before speaking to a lender, and other online sites will help you to compare lenders side by side to see which will work best for your situation. You might be surprised at how many reputable lenders are well known for working with those who have little to no credit, like Capital One.
Regardless of your credit situation, there’s no reason to let it hold you back from owning a decent vehicle. It might take a little negotiating, but take charge and you can get the loan and rates that you deserve!