Nobody starts with good credit. No credit can turn into good or bad credit depending on things like school loans, medical bills, credit cards, mortgages, and other high-ticket items. It puts you in a precarious position: one unfortunate incident, and you’re buried under so much debt you may never be able to get out. Fortunately, bad credit doesn’t make you a bad or high-risk individual. It simply means that you’ve fallen on hard times and may need some help meeting your future financial goals.
But what happens if you don’t have a vehicle? In America, it’s difficult to get a well-paying job without being able to drive or having reliable transportation. If you have bad credit, there are many dealerships and banks that will refuse service simply because it might hurt their bottom line. This is where bad credit car loans come in. If you’ve looked for bad credit car loans near Lebanon, NH, you know that a bad credit car loan can be a lifesaver. With a vehicle, you’ll be able to take jobs that pay better, and you’ll also be able to run errands, go to appointments, and get together with your friends and family. In other words, you can go on with your daily life. So what, exactly, are these loans, and can they benefit you?
What Are Bad Credit Car Loans?
A bad credit car loan is what it sounds like – a type of loan specifically geared toward those with bad credit. In order for a bank to loan out money, they should reasonably expect to get that money back in a certain period of time. If someone has bad credit, no matter the reason, the bank will see a loan as a high-risk investment for them since there is a higher chance of the loan defaulting, which means the bank will see very little repayment, if any at all. In order for the bank to stay in business, it must decide which investments are worth the time and effort and factor in things like how risky each investment could be.
Therefore, a bad credit car loan differs from a good one. Bad credit car loans are often secured at a higher interest rate, for a longer period, or with some level of acknowledgment that the loan will be paid differently than it would if it were a good credit car loan. While a high-interest rate might be disappointing, if you can make the agreed-upon monthly payment, it’s a good idea to go ahead with the loan instead of waiting until things start looking up. When you have a stable form of transportation, positive change is more likely to happen. But what about choosing a vehicle? What options do you have with a bad credit car loan?
What Type of Car Could You Get With a Bad Credit Card Loan?
There are a few things to keep in mind when looking for a vehicle that can be purchased with a bad credit car loan. You probably won’t be able to get the newest vehicle or the most expensive, but what you can do is find a reliable car to help you get back on track. That doesn’t mean you can’t get your dream car – just that you’ll have to weigh the pros and cons of any vehicle you’re considering. Would it make sense to buy a new two-seater sports car or a Certified Pre-Owned Ford Bronco? By thinking this way, you save yourself time, money, and energy. There are plenty of vehicles out there that can be purchased with a bad credit car loan, including vehicles you’ve dreamed about driving.
Many drivers try to find a vehicle that’s at least a few years old – old enough so that the price is reasonable but not old enough to have a lot of problems. What you don’t want is to get stuck with an old heap of junk that needs constant repairs. That will cost you more in the long run than it will to buy a like-new car, and when you’re trying to live life and create memories with your friends and family by dining out at places like Frisch’s Big Boy or visiting local hot spots like the Lebanon Peddler’s Mall, you don’t want to be stressing about the possibility of needing to call a tow truck.
Look for something somewhat practical, with benefits like high fuel efficiency, easy maintenance, and relatively inexpensive to repair. People have been able to secure bad credit car loans to purchase all types of vehicles from top automotive brands like Ford – if you have found your dream car, it’s time to see how the numbers can work for you instead of against you.
How Will a Bad Credit Car Loan Help You?
There are short-term and long-term benefits of bad credit car loans. While the cons do include things like a potentially higher interest rate, they are nothing compared to the benefits. In the short term, you will be able to drive home in your vehicle, along with being able to transport yourself and others wherever you need to go, from work to school to the grocery store. You won’t have to rely on public transportation, walking, biking, or hitching rides with friends. You’ll be more independent and be able to take action when an opportunity presents itself. You’ll be able to do essential errands but also have the ability to do fun things, whether it’s taking a drive to Underhill State Park or meeting a friend for dinner.
In the long term, if you’re making your monthly payments, that will boost your credit score. Each payment will show the bank that you are no longer a high-risk investment, which might lead to lower interest rates, lower payments, or other perks. This will allow you to re-establish yourself as a low-risk investment, which can help you when you go to the bank for other loans, like small business loans and mortgages. It all starts with building your credit back up, one payment at a time. Depending on your situation, if you can pay a higher monthly payment than required, you’ll also pay off the loan faster, which means you won’t have to pay as much interest.
Get Your Dream Car With a Bad Credit Car Loan Today!
Whether you’re looking for a pickup, SUV, van, or car, you don’t have to relegate yourself to sketchy private sellers or predatory lenders. Even if you don’t have much in the way of a down payment, you can still be eligible for a bad credit car loan. Faith’s Automotive has relationships with many financial institutions, with the overall goal of helping each and every customer find a loan and a vehicle that they can get excited about. Finances are stressful enough as it is, and trying to secure a car loan shouldn’t add to that stress, if at all possible. That’s why Faith’s dealerships rely on financial experts who can quickly show the customer what to expect in terms of interest rates, monthly payments, loan length, and what type of vehicles are available that meet the requirements for a bad credit car loan.
Don’t be afraid to dream – you can still drive a great car even if you have bad credit. You can pre-qualify on our site or chat with a representative before coming in to get an idea of what the numbers might look like, but for the most accurate picture, drop by one of our dealerships to talk with one of our associates about bad credit car loans. You’ll be surprised by how many options you have. Visit us today to secure your bad credit car loan and drive home in a fantastic, reliable vehicle!