What do you do if you’re broke, dealing with bad credit, and need to buy a car? The solution is to get a cheap car or a small car loan when you’re short for cash, and there are places where you need to be.
Read on for our tips on car financing when you’re broke and how to boost your credit score.
Need a Car for Work or College?
If you’re unemployed or don’t have a steady income, you might not be able to get a car loan. Even non-prime lenders specialize in car financing for buyers with bad credit, and double-check to see if you can afford the payments.
Your credit score is essential when applying for a car loan, but the good news is that there’s no minimum score needed to be approved. However, the higher your score, the better loan you’ll get along with a better interest rate. So, no matter how broke you are, it’s still possible to get a car loan with a less-than-perfect score.
Boosting Your Credit Score for Car Financing
If you improve your credit score before applying for car financing, you can save money over your loan’s life, which could make a big difference in your buying options. The first thing you need to do is figure out where your credit score stands and look for areas where you can get approved.
The following are some actions you could take to boost your credit score for car financing:
1. Reduce Revolving Debt
Revolving credit is the second most important aspect of your credit score. Keeping your card usage ratio under 30% by paying your debt is among the fastest ways to improve your score.
2. Pay All Your Bills on Time
Your payment history is the most important aspect lenders look at when examining your credit report. Even a single late payment can make a difference so try to pay all your bills on time to improve your score.
3. Cut Down Unnecessary Expenses
An unpopular way to boost credit score is to cut down expenses. By doing so, you reduce your debt accumulation and financial burden along with boosting your credit score.
4. Debt Consolidation
Debt consolidation has the potential to help or damage your credit score. By merging all your debts and interests into a single loan, you can manage all your debt, including car financing
5. Bring Any Past-Due Accounts Current
If you’re looking for where to start, here it is. Paying off any collections and bring past-due accounts currently is another great way to improve your credit score.
Need Help in Car Financing
It’s not easy finding car financing when you’re broke. It may seem like there’s no hope, but don’t give up. If you want to learn more about car financing with a bad credit score, please visit MyAutoLenders today.