Tips on how to get a pre-approved car loan if you have bad credit

Tips on how to get a pre-approved car loan if you have bad credit

Car sales have increased in recent years, especially those with a greener approach. Depending on the model, the type of car and features, the price of the car may vary, and in the vast majority of cases, people need to finance a car.

For this reason, many banks have listened to their users, specifically offering a car loan for all those people who do not have the full money or who need to make a payment in installments.

Reasons why you need a pre-approved car loan

As we mentioned before, the first step in addition to making the decision is to go to a car financing simulator and put the money to request and the fees in which you can pay it. Once you have seen the Best options, you can start a pre-approved car loan process.

This entity will ask you to have all the expenses contemplated, this includes gasoline, parking, insurance, letters, registration tax, circulation tax, maintenance, repairs, and IVT if you are going to buy a second-hand car. Why do they ask you to keep this in mind? Because when requesting car financing, it is not only for the initial price of the car but for all the expenses that will entail in the months where such a car loan is being paid.

If you want to buy a car in installments without financing, you can go to a personal loan site where these are for all reasons, however, the good thing about car financing is that they can offer you more money or more payment terms since they do not It is such a common expense or that people usually do often.

Some of the mandatory requirements to apply for Good Finance financing, for example, are: being of legal age; go through an analysis of income, debts, payment history, assets, and so on; not be on delinquent lists like ASNEF or RAI. In some cases, to obtain more benefits in your car loan, entities will offer you alternate services, with which you can obtain better rates, for example, car insurance or domicile your payroll.

What to consider before buying a car?

Before looking at the model or brand of the car you want, it is very important to consider the economic factor. Since depending on your possibilities, you can access a car financing, likewise, taking into account your risk profile, entities can lend you more or less money in the requested terms.

If you are not sure, you can use a car simulator financing tool to determine the money you will have to pay month by month, adding interest rates and commissions. Once you can calculate the car financing the rest of the process will be much easier.

It is very important that you know that a new car carries a lot of expenses and that it is not advisable to apply for loans for very expensive cars. Why? because this makes the debt bigger and that the money that you might be able to invest and other types of objects or activities is lost in interest just for having a luxury. Additionally, remember that although there are cheap credits, a car is not an investment, on the contrary.

You will have to invest a lot of money in a car and once it leaves the dealership, it loses its initial value; Cars are one of the fastest devaluation products in the market. So first ask yourself how to finance a car, before applying for a loan. If you already have everything resolved, excellent because a car is a necessary product in most times. Now what you should look for is the best car loan in the market.

What other options are there to finance a car?

What other options are there to finance a car?

To finance a car there are other options beyond requesting a loan, as some entities manage their own conditions. To apply for a car loan, you can do it through a bank or a dealer. The most recommended is online, through entities that offer personal loans, but we tell you what the conditions of the concessionaire and the bank are.

If you want to know how to finance a car through a bank, you will have to check the conditions of several banks, as they all have different rates and conditions. However, it is one of the least profitable options for financing new cars or financing used cars. Why? because the bank relies only on your credit history while on the other hand, a dealer, for example, can offer you some promotion.

Even so, the advantage of financing a car with the bank is that if you have other products with that entity, you can get a better interest rate or benefit on your car loan. But if not, some disadvantages are that with the bank there is no option to negotiate, since all of its conditions are practically fixed; If you have a mortgage or debt, the requirements to finance a car will be more stringent.

If you do not want to go to the bank and go through these processes, unless you want bank embargo cars, which can be economical but difficult to get, you can go directly to a dealership to acquire a Good Finance with financing, for example.

The advantages of a dealership are that you can negotiate the interest rate and the price of the car if you are denied the car loan at the bank, the dealer is likely to grant it; You can also offer your old car as a payment method, in some cases.

Finally, if you are looking for cars financed without payroll, buy a car with asnef or buy a car without financing, your options, although they will be more limited, are still existing, because although buying a car while in asnef is difficult, now there are more options within the market You can ask for a loan. This is the case of personal loans, surely the bank or the dealer will not grant you the car loan, but you can save one part of the car and the other request it in comfortable installments with good interest rates. Opportunities still exist to get that car.

Betty Terry