Unless you live right in the heart of a major city, it’s necessary to have some type of vehicle these days. Public transportation in most suburbs provides little more than token service to most commuters, meaning it’s unlikely that you would be able to take a bus to work without also having to walk a fair distance. While that might be fine when the weather is nice, nobody wants to battle the harsh elements on a daily basis in winter. And what happens if you’re running a bit late and miss the bus? You can then find yourself waiting for 15 or 20 minutes or more for the next one, further delaying your arrival to work and putting your pay — or the job itself — in jeopardy.
So clearly you need an automobile of some sort. But what if you have a less-than-perfect financial history? How can you possibly finance the purchase? Fortunately, you might still be able to qualify for a bad credit car loan that will allow you to get the vehicle you so badly need.
A bad credit car loan works pretty much the same way as regular loans, with a couple of differences. First of all, you will automatically be considered a higher risk than other customers, and as such, you’ll likely be subject to higher interest rates. Specific rates will vary depending on a number of factors, but you should be prepared to pay several percentage points above what other customers will be asked to pay. In some instances, a bad credit car loan can carry an interest rate of 20 percent or more. This is on the high end, and should be avoided if possible. All you have to do is shop around because there are plenty of lenders that would gladly accept your business.
Another difference between a bad credit car loan and a regular one is that you might be asked to provide extra documentation regarding your income and work history. For example, it is not unusual for high-risk borrowers to have to show several months’ worth of pay stubs, as well as a document attesting to how long you have been working for the same employer. This type of information should be easy to gather together, especially if you’re expecting to have to show it at some point. Just go in prepared and you’ll significantly lower the hassles associated with applying for a bad credit car loan.
We all make financial missteps from time to time, so our past mistakes shouldn’t automatically prevent us from moving forward with our lives and gaining access to the kinds of services everyone else enjoys. Having your own vehicle makes life so much easier that you should definitely try to secure financing for one if at all possible. Compare the going rates for a bad credit car loan today and apply for the ones you think you qualify for. You might find yourself behind the wheel of a great new ride sooner than you think!