subject: What To Consider Before Applying For Bad Credit Loans [print this page] How many times you got rejection due to bad credit score? Most of loan provider companies do not consider those persons who have bad credit history or bad score. If you are one of them and several times your faced this trouble then dont worry still there are some chances to get approved loan.
Many people think it is impossible but you can make its possible easily. You just need to follow some instructions to get second charge bridging loan.
Do little research You need to find out companies which are providing bad credit car loans. It will take some time to find out; look around you will get some local companies as well for loan. Once you find few companies, make a list of those to compare their rates.
Compare car loan
It might possible you get a company nearby that provides you good rates for car loan. So, its better to compare rates of those listed companies first. Check their services, loan processing fee, interest rates and other charges before you apply. Comparison will help you to choose the low-interest rate company with several benefits. Because most of bad credit loan provider companies ask for higher interest rates, you should compare them to choose top three low-interest rate providers and move forward.
Check your Credit score
You have listed three companies that can offer you loan against bad credit, but do you know why you have low score. Get a copy of your credit history to know the reason. You can get this from three different website and compare your score to find out the mistake. if any. In case there are some errors in your score, make a complaint to rectify this. Small mistakes can create big issues; check each report carefully and then apply for second charge loan.
If it is good then you can apply for loan if still not then look for some other solutions.
It might possible your pending bills are also affecting your score. Most of people think its a small thing but it can affect majorly. It is always advisable to pay all your bills on time; delays will not only force you to pay extra although your score will go down.
Know interest rates
Lower score, higher interest rates this is a common method of most of loan providers. Extremely low scorer would pay highest interest rates plus may lender ask for down payment before offering you a car loan. Down payment could range between 20 to 50 percent of the total cost of the vehicle. While the interest rates can vary between 8 to 26 percent.
Increase your score
You can improve your score; pay your all pending bills and other debt. If, not able to pay all better to pay as much you can, then wait until revised score comes. You will get improved score, now no need to pay large amount of down payment and will be able to get lower interest rate loan easily.
In most of case credit card payments are major cause for lower score. Always use your card in limit and pay debt amount on time. If you not able to pay at once avoid using credit card until you clear our debt. It will help to increase your score and no extra burden on your budget. In-fact after this you can easily avail second charge bridging loan.
Do not get discouraged
You have applied for several times but still not able to get approval! Do not get discouraged, you should wait and work out to improve your score. And if you cant wait then better to choose used or pre-owned car. It will cost you lesser and you will be able to rebuild your score. Once your score is good you can buy new one easily.
What to do next
You have top listed thee bad credit car loan companies apply for car loan. This time you will not get rejection, means you can buy your loved car. Before you accept their loan read terms & conditions carefully.
Caution: Some financial companies can try to make you fool because most of the borrowers dont know their score before they apply. They can take advantage of your little mistake, check your score before you apply second charge loan and dont give anyone single chance to make you fool.
