The best way to get your car loan approved is to get your credit score up before you apply. If you are looking for a Secured car loan and you have poor credit, your loan application will be turned down. Poor credit can make your car loan payment more expensive. Before you go looking for a car loan, consider getting your credit score up. In fact, you can do this yourself. You need to know exactly what your credit score is to know if you need a Secured car loan bad credit approval.
To get started, you need to order your credit score. Get a free report from one of the three major credit bureaus (Experian, Equifax, or Trans Union). Ordering your report and then reading it thoroughly is important, since you need to understand what information is on it.
The major credit bureaus are required by law to send you one copy of your credit score for free every year. You may also get a free report via fax. After reviewing your report, find any items that are incorrect. Write and challenge these errors.
If the item(s) are inaccurate, dispute them with the credit bureau(s). You have thirty days to do this with each bureau. This challenge is part of your Fair Credit Reporting Act rights. The information must be corrected or you will have to consider your credit score being lowered.
After thirty days, if the creditor confirms the item(s), send the confirmation back to the credit bureau. Then follow up. Again, send them the details of your counter-claim. If you don’t have an idea of the status of the loan, wait a few months. The statute of limitations is about six months in most cases.
If you still need additional information, or you have new evidence brought to their attention, they will contact you. If everything is all in order, the lender will grant your loan. Your bad credit will now be history. You will no longer be denied any new car loans. Good credit scores will always be available for secured loan applications.
If you own a home and are applying for a car loan, you can get a secured loan from the bank. This is one of the easiest ways to get financing. It is not quite as good as a personal loan, but it is still good enough. You do not have to go through a credit check. The bank verifies employment, income, and the value of your home to make sure you can repay the loan. This way, you know ahead of time that you are qualified for the loan.
If you have less than perfect credit, it may be harder to find a loan. In this case, you can still obtain a car loan. There are many lenders that specialize in sub-prime car loans. You should do a little research to find a reputable company.
It is possible to get approved for a bad credit secured loan. However, you will have to pay higher interest rates. You can avoid this if you have a good credit history and you have a job that pays well. If you can show the lender that you have been paying all your bills on time, they should be willing to help you out.