How can I get a Car Loan with a 500 credit score?

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Need to buy a better vehicle but have a low credit score? Discover your finance agreements and gain pre-qualified status with Mi Amigo Motors today.

Contact Mi Amigo Motors to ask about auto financing with low credit scores 

Outside of a property, buying a car is one of the biggest purchases that anybody ever makes, which is why it’s likely that you’ll buy yours with an automotive financing company. However, getting a car with bad credit can feel like a daunting task.

The harsh reality is that low credit score car loans can be difficult to find. Fortunately, there are options for finding the best car loan for bad credit. A little bit of research and a call to Mi Amigo Motors will get you into the perfect vehicle easier than you think.

Boost your credit score

One way to improve your chances of getting approved anywhere is to of course, boosting your credit. If you want to buy your vehicle in the next few days, there isn’t enough time to boost your credit score, but if you plan on getting a car loan later in the year, time is still on your side. Access your free annual credit score and make the necessary changes to rebuild it. If you see erroneous information on your report you can contest it and possibly get it removed. Even if you boost it by 50 points, it could strengthen your position with a lender. The benefits will extend to other forms of lending that you may seek over the coming years as well.

How do I find financing for used cars for sale near me?

Finance agreements aren’t restricted to new cars. Opting for a used model will bring the cost of the car down, which will boost your chances of getting a car with bad credit. Here at Mi Amigo, we boast an extensive range of used vehicles for all driving preferences. Every driver deserves a practical car that they’ll love driving. Contact Mi Amigo Motors and inquire about our special offer for buyers with troubled credit.

Save for your down payment

Your down payment amount can make a big difference when looking at low credit score car loans for two main reasons. Firstly, it means that you will be asking for a smaller loan. Secondly, the loan-to-value (LTV) rate will be lower, which also increases the probability of acceptance. Whether you’re trading in an old vehicle or paying an extra $1,000 in cash, the increased down payment will serve you well.

Know what you can afford

When applying for a low credit score car finance agreement, the lender will want to compare the monthly payments against your current financial situation. So, calculating what you can afford to pay will enable you to apply for a car loan without stepping into financial hardship. Along with the vehicle cost and monthly payments, you should consider the insurance, maintenance, and other costs. After all, there’s little point in getting a car you cannot afford in the long run.

Seek pre-approval

Applying for a car loan when you know your credit rating is low can be stressful. Therefore, opting for pre-qualification is a great way to get an idea of what you already qualify for. This means that you and your car dealer will know what price range to look for as you shop for your next used car.  It covers both the maximum amount of the loan as well as the monthly terms so that you know what you are looking at before you purchase a used car.

Once you have this figure in mind, you can shop freely to find a car that suits your budget.

If you want to learn more about getting a car with bad credit, get in touch with the Mi Amigo team today. Schedule a free one-on-one consultation to see how we can help you get into a great used car today!