The best bad credit car loans for 2020 come with the perks of allowing you to get a loan even when your credit score is bad or zero. Unarguably, a lender or even a federal government owned institution requires that you have a certain credit score. Some may have set it to a minimum of 700 in order to ensure that your financial debt record is as clean as possible.
But what happens if you’ve had to face the hurdles of life and you’re unable to meet their expectations, does that mean that their decisions are final? Not at all! In this case, you can either take certain steps that will help you to improve your credit score or get a small loan that will enable you to buy that car that has become a necessity. The latter is where a list of the best bad credit car loans come in.
How to Shop for Car Loan with a Bad Credit
There are certain measures you have to put in place before taking an auto loan in a car dealership. This will ensure that you don’t bring in more workload upon yourself. Now, consider the following:
1. Know the Exact Car you’ll Like to Purchase:
Don’t settle for the car because it is flashy but because it can meet your needs. Do you have a large family that demands a bigger car or a small one that requires a car for personal use? Remember, your APR will be higher than usual considering the fact that it is a bad credit loan you’re trying to obtain. In the same vein, try not to be pressured into buying a car you wouldn’t have on a normal day.
2. Know Your Budget:
How much are you willing to spend for a car if you were purchasing it without a loan? That should also be considered. You can get the market prices on Vehicles at car magazines, local newspapers, dealer websites, and Craigslist. This type of loans lasts between 24 to 36 months which is in the dealer’s aim to collect their money upfront if in any case, the borrower defaults.
3. Negotiate with the Dealer:
You may be surprised at how much you will be able to lift from the first price you were told about a car. If you’ve carried out prior research, then you should be able to negotiate your chosen car to a price range that is closer to what you had in mind.
3 of the Best Bad Credit Car Loans for 2020
The listed below are the top best bad credit car loan lenders in 2020 available in either the U.S., Canada, or Australia which you can give a try. Their requirements are not extreme and the monthly income you need before getting approved is not extremely high. Therefore, check out the following in your quest to get a new loan for your car:
1. Auto Credit Express:
Auto credit express has 1,285 dealerships across the U.S. and Canada which ensure that you can easily find a car in a brand you like and closer to yours. It caters for people who need may have been classified as no credit, bad credit, or bankrupt. Moreover, if you have a pre-tax monthly income of around $1,500 to $1.800, you stand a better chance of getting a loan from this company. A few questions are what you need to answer in order to get started and there are no age requirements.
- A good way to get funding for an older car
- A consumer-friendly lender for bad credit car loans
- Has an A+ Rating and has been accredited with Better Business Bureau
2. My Auto Loan:
My Auto Loan is another platform that promises to help you to get a loan for that new car you have in mind to purchase. There are no fees levied for the service and as such, it is entirely free. Likewise, the company has made plans for new and old customers to get a deal on new and used cars despite their bad credit score. There’s also an estimate calculator that will help you to calculate how much you can get through the loan. Nevertheless, the site’s terms are that you must have a monthly income of at least $1800 a year or $21,600 a year.
- Several customers reviews of Trust Pilot
- Has A+ rating and accredited by Better Business Bureau
3. Capital One:
Capital One offers an auto navigator tool which allows potential customers to be pre-qualified prior to the approval process for the loan. You can also calculate the estimated monthly payment which you will have to pay as interest for the loan. Currently, Capital One has over 12, 000 dealerships that are willing to finance your car.
A review of the best bad credit car loans for 2020 as outlined above gives you one more alternative of getting financial help in the U.S., Ontario, or the UK. You can be a proud owner of a car and getting through the everyday hassles with one while you gradually pay for it. Moreover, the best bad credit new car loans ensures that having a bad or no credit does not mean to never have to own your own ride.