My credit is bad, can i obtain auto financing?

Bobb Says, Yes you can obtain auto financing with bad credit.

We work with over 35 available lenders and have in-house financing (buy here pay here) available also. 95% of all applications are approved.

Payment Shopping

ABC News discusses how consumers typically shop for a payment they can afford in “Tips on Auto Financing If You Have Poor Credit”.

Loans that impact you credit

  1. Student Loans are figured into your overall debt-to-income ratio;
  2. Previous auto loans;
  3. Payday Loans; and
  4. Mortgage loans

Unfortunately, one can become so focused on being approved for a car loan that their credit never receives the attention it deserves. Bobb Says Yes has two things in mind:

  1. Approving you for a car loan; and
  2. Making it easier for you  to get a loan the next time you apply.

Buying a Car

The cost of buying a car involves more than the monthly payment, it involves gas, monthly maintenance, insurance payments, and miscellaneous (like car washes or supplies for the DIYers). When focusing on the monthly payment it is easy to overlook these other important factors. Disregarding these things can quickly lead to the repossession of your vehicle, which we want to avoid.

Best Rate

While some suggest to shop around for the best rate, this normally does more harm than it does good because it increases the number of times your credit report is pulled. When your credit report is pulled several time in a short period of time, it reduces your credit score and gives the appearance of desperation.

Shortest Loan Period

One can now get car loans for for as long as nine years; depending on your credit, the type of vehicle you seeking a loan for, and whether the vehicle is new or used. The trade off is a lower monthly payment over a longer period of time or a higher monthly payment in a short period of time. When paying over a longer period one may end up paying over 1/3 of the actual price of the vehicle in interest alone. A shorter loan period at the same interest rate will reduce the loan amount paid for the vehicle.

Credit Impacts Everyday Living

Many businesses have started the practice of running a credit report. This includes landlords, student loans, higher education, electric companies, gas companies, insurance companies, and more. The impact of credit on everyday life has led to Representative Maxine Waters recently introducing the Fair Credit Reporting Improvement Act of 2014 which is aimed at:

  • Bad information will disappear quicker
  • Inquiries that occur within 120 days of each other can only be treated as one inquiry
  • Adverse real estate loans, such as foreclosures, would have to be removed if they are determined to be caused by deceptive lending practices
  • the act¬†would require a lot more transparency and investigating on the part of the credit bureaus in the event that a consumer disputes information on his or her credit report
  • All bankruptcies would have to be removed after seven years instead of after 10 years.
  • All judgments would have to be removed after four years instead of after seven years.
  • All paid (released) tax liens would have to be removed after four years instead of after seven years.
  • All collections would have to be removed after four years instead of after seven years.
  • All late payments and other adverse items would have to be removed after four years instead of after seven years.
  • Any and all adverse debts would have to be removed within 45 days of payment or settlement.
  • Any adverse information regarding a private student loan would have to be removed if the debtor makes nine consecutive payments on time.

 

Being approved for a car loan with bad credit

Car loan approval depends on:

  • your credit score;
  • how much of a down payment you have;
  • amount of income and proof;
  • utility bills in your name;
  • references;
  • proof of insurance;
  • proof of identity

When you APPLY for your car loan it will be approved through one of 35 lenders we work with and In-House (buy here, pay here) financing option that allows us to approve over 95% of all applications.