The Subprime Saga: Getting An Auto Loan When Your Credit Score Is 500The Subprime Saga: Getting An Auto Loan When Your Credit Score Is 500

Nobody wishes a credit score which is less than perfect. A number of things pile up before you lose your stellar credit score. For some, it might be an unexpected illness, sudden job loss or even wrong financial advice. However, if you have set your eyes on a new car, getting the required financing is not a difficult task. Thus, if you have a subprime credit score of 500 or less, fret not, it cannot keep you from purchasing your dream car.

Auto Loan Tips for Buyers with Less-than-Perfect Credit Score

The following points will help you to evaluate your situation and take the correct steps in order to obtain a subprime auto loan quickly and easily.

1. Focus on getting Pre-Approved Auto Loans

The importance of a pre-approved auto loan is immense for every car buyer. When you go out to obtain auto financing for your car, keep in mind the role that a pre-approved auto loan will play. Remove the notion that pre-approval comes with high-interest rates. Do not close your deal before visiting 5-6 lenders. Chances are that you might find better interest rates if you dig more and shop around. Put all your efforts in securing a pre-approved auto loan and only then, focus on selecting a car that is right for you.

2. Save Money, Pay Down Payment & Negotiate Better

The ideal down payment amount equals to 20 percent of the total price of the car. Lender’s perception of bad credit car buyers can change drastically if they are willing to put down more than 20 percent of the total amount. Thus, it is a good idea to save three-four months of your income and use the money to pay a good amount of down payment. A large down payment puts you in a good position to negotiate lower interest rates than what is offered by subprime lenders. It also helps you in gaining a faster auto loan approval.

3. Building a Better Credit Score

A poor credit score does not reflect your character or ethics. However, it definitely creates an impression on the lenders. When you work towards building a better credit score, it transforms their perception and you gain more trust. You can build a better credit score by keeping your credit utilization rate on credit cards less than 30 percent. Paying bills on time, having several credit accounts and obtaining secured credit cards are different methods that you can use to build a strong credit score.

Bad Credit History can lead to a Good Future

Believe it or not, an auto loan can be the building blocks that will lead you to a stellar credit history. Obtaining an affordable subprime auto loan will increase your chances of building a higher credit score. Therefore, do not hesitate to obtain an auto loan for your next car as it is not only the bridge between you and your new car, but it can also transform your credit score from 500 to 700.

 

by Kaitlin Miller
References and Bibliography
Enjoy low rates on no money down auto loans.
Rated:NR/0 Votes
9 Views
Add To My Article Reading List
Add To My Article Reading List
Print Article
Print
More Article By Kaitlin Miller
More Article by Kaitlin Miller
Share
More Articles From Loans
More Articles From Loans
Related Articles and Readings
Low Cost Auto Loans - Save Money on Your Next Auto Financing By: Rachel Anthony
The terms of auto loan will settle on how much you are paying now and how much the overall auto financing cost you. ...
Auto Loans Brings Your Dream Automobile Within Your Reach By: Sara Chambers
An automobile is something more than an engine on four wheels. It is more than just another mode of transport. An automobile is the reflection of the personality and tastes of its owner. A person who owns a Rolls Royce is probably a person who gives top priority to quality ...
Advantages of Military Auto Loans Over Regular Auto Loan By: Rachel Anthony
There are so many people in the military that are unaware of the advantages they have because of their profession. One amazing offer is military auto loan ...
How to Get a Good Deal for an Auto Loans Online By: Rachel Anthony
These days online auto loans has become a very popular financing option for people with bad credit or any credit rating. ...
Before Shopping For a New Car Visit Your Banker By: Amy U. Goodmann
It's undeniable that feeling of excitement will rush through your veins if you're about to get a new car However, such positive feeling can get you into trouble with car loans if you let it cloud your reason and ...
The information provided in this article and/or the comments is the sole responsibility of their respective authors and does not necessarily reflect the opinion of ezinepost.com. ezinepost.com  does not endorse any article and/or comments published by our web users unless otherwise noted. 

Member Panel

login to submit articles and more

StatisticsEZINEPOST.COM

  • » Active Categories: 419
  • » Active Articles:252096
  • » Active Authors:32163
  • » Active Members: 35787
  • » Statistics Updated:
    - Sat Aug 11th, 2018 01:04PM EST