The most common barrier between an individual and owning a reliable car is financing. Customers who have less than perfect credit are often turned down for funding, and this can lead to frustration and embarrassment. Fortunately, some lenders specialize in financing for customers who have credit issues in their past. Before rushing out to a dealership, it’s best to be prepared. Having the proper documentation on hand and obtaining financing before trying to buy will make the process easier and prevent the heartbreak that accompanies falling in love with a car that isn’t affordable.
A finance company will need several pieces of documentation to process an application. Be sure to have a valid state ID, social security card, pay stubs, and recent tax returns available. These items will verify the identity of the applicant and provide the loan company with the finance information they need to determine a loan approval amount. Having these ready will make the approval process smoother, and get the applicant in their new car even faster.
Determine a Budget
An all too common blunder that most new car buyers make is purchasing a vehicle that isn’t affordable. Examine a household’s monthly income and compare that to all expenses. This can make it easier to determine a comfortable payment amount that won’t break the bank. Once a vehicle has been chosen, it is a good idea to get an insurance quote, as some new cars can cause premiums to increase exponentially.
After gathering the required information and determining a comfortable payment amount, it is time to apply for the loan. Be honest on the application, as the loan underwriter will need to verify all information to approve the loan. Most loans can be approved in just a few hours. However, a more complicated credit history can take extensive research and extend the approval process by as much as one week.
It is possible to own a car, even with bad credit. To get started with the application process, contact Consumer Portfolio Services. Their team of loan professionals can help people of all financial backgrounds get the financing they need to secure reliable transportation. Call today and make the dream of car ownership a reality.