Bad Credit Can Happen to Anyone!

Credit scores play a very important role in our financial lives and anyone can have a bad score. It's especially easy to have what is considered a “bad score” when trying to rebuild your score. Some things that can impact your score include missing a credit card or loan payment, maxing out a credit card, applying for too many credit cards within a short period of time, bills going to collections, declaring bankruptcy, settling debt with a creditor for less than you owe, consolidating your debt, refinancing your car, home, or loans, even canceling a credit card can impact your score! That is why Mr. Ed is here to help! We take pride in being able to help people with all types of credit get a vehicle while treating with them with respect because we know bad credit happens to even the most responsible people.

How can I get a bad credit car loan?

You may be worried about finding a car loan with favorable terms if you have bad credit but worry no more because Mr. Ed is just the place to go! We only work with the nation’s top financial institutions so we can assist you in buying or leasing the right vehicle for you. Here are some ways that you can help yourself get a bad credit car loan:

 

  1. Know Your Score: Before you even begin looking for a vehicle to purchase you should find out what your credit score is! There are many tools available that offer free credit reports. These reports can help you understand what is affecting your score and how to fix them.

  2. Research: Make sure you do your research! You should research key things like Annual Percentage Rate or APR to understand how loans yearly interest rates work and find out the value of vehicles if you are looking to purchase something used. Sites like Kelly Blue Book are great for this!

  3. Narrow Your Search: You should also determine what kind of vehicle you are looking for? A sedan, minivan, SUV, or truck? After you find the type of vehicle you are looking for, you should determine how much you can spend responsibly on a vehicle. Make sure you think about all the expenses that come with a vehicle too like insurance and gas so you can stay on budget!  

  4. Know the Details: When working with a Mr. Ed finance professional make sure to look at the loan terms, not the monthly payments. These low payments may look great on paper but they can also mean higher APRs which means you could end up paying more than the value of the car by the end of the loan. Favorable terms to look for are usually indicated by the lowest APR over the shortest period of time. You’ll get more manageable monthly payments with reasonable interest rates this way!

  5. Consider a Co-Signer: Bring along a friend and consider a co-signer! Bringing a friend or a family member along for the ride can help inspire your confidence and help you negotiate for the best terms. You can also consider asking them to co-sign a loan with you if you have a trusting relationship. They become responsible for the car loan if you are to default on your payments though so make sure you can always make your payments!  

 

You can start the process of finding a bad credit vehicle loan today with our free and easy loan application right here online! A representative from Mr. Ed will contact you ASAP after you submit it to speak with you about next steps. We cannot wait to help you achieve your goals of driving a new or pre-owned vehicle today!