If you are among those who is suffering from bad credit, but have a fetish for cars, here is some good news for you. There are a lot of banks that offer auto loans even to those who are in their bad credit customer list. The process can be a little difficult, but in the end, you are sure to drive away with your dream car. There are plenty of ways to apply for a car loan; you just need to know where and how. Some of the banks that offer auto loans despite of a bad credit are as follows:
Banks offering auto loans to customers with bad credit
We have found 9 top banks that can help you buy a vehicle even if you are struggling with your credit.
1. JP Morgan Chase
To finance a car with the help of JPMorgan Chase Bank, you must either be an existing customer of Chase, or purchase the car within the Chase dealer network. This bank even finances non-Chase customers; however, the credit decision and other processes will be different. All applications are subject to credit approval by Chase. The customer should accept all terms and conditions with regard to vehicle make, age and mileage.
2. Bank of America
You might be lucky to get a car loan within 60 seconds and upload documents online, if you erica. You also get to know how much you can afford, so that you have a budget in mind before going car shopping. Bank of America has a huge authorized dealer network that will help you to streamline your process.
3. Wells Fargo
With over 65 years of experience in providing auto loans, Wells Fargo can be a good bet while choosing a lender for your car. Its loan options are tailored as per customer demands. The bank also offers exciting customer relationship discounts that can get you a car loan at a cheaper rate.
4. PNC Financial Services
PNC auto loans are designed as per customer needs. Whether it is buying from a dealer, from a private party, buying a lease or even refinancing an auto loan, they cater to everything. You just have to give 15 minutes of your time, within which the bank authorities would complete all formalities. You can walk out with a check in your hand and buy your dream car within your budget.
5. Citigroup Inc
Owning a car is now becoming a necessity more than a luxury. With an increase in car prices, buying a car seems to be unaffordable. However, Citigroup enables its customers to buy a car in easy installments. It provides real value for money and maintains a healthy customer relationship.
6. HSBC
HSBC Auto Finance brings a plethora of auto loans that you can choose from. It is easy to find as the bank is located at every corner of the world. The bank offers variety of attractive features such as zero down payment option, quick online payments, reduced interest rates and much more. It will not only help you to save time but will allow you to monitor your transactions, giving you an insight of all account activities.
7. Santander Bank
Santander Bank claims to offer an instant auto loan quote within 60 seconds. All you should do is complete the form, get a pre-approval and drive your dream car. The bank allows you to get pre-qualified regardless of your credit score.
8. Capital One
Finance your car with Capital One without any risk to your credit score. The bank also clears out all financing terms and conditions, before you can walk in to a dealer. This will make sure how much you can afford and will not be too heavy on your pocket.
9. ABT Bank
American Bank Trust offers auto-loans at competitive interest rates for used as well as new cars. It has a budget-friendly repayment option that the customer can choose as per their convenience. The bank also offers a free pre-approval, so that you can bargain better with the dealers.
What should you know to apply bad credit auto loan?
These banks help people to seek an auto-loan even if you don’t have enough money right now. The bank recommends to first get your auto-loan approved, so that you know your budget well in advance. They believe in giving its customers a chance to improve their credit history and so offer some car buying tips.
All of us deal with credit problems. This can be because of a sudden medical emergency, irresponsible spending behavior or simply a callous approach towards paying EMIs. Before approaching a bank for an auto-loan, we should remember that ‘There is nothing called a free lunch’.
Although banks might welcome all its customers, but those with a bad credit history are often charged a higher rate of interest. This seems to be fair enough, as the bank only wants to make sure that you pay back their money.
Also, you should be ready with a good amount of down payment before you venture into a loan. Doing so will increase the confidence in the lender and will make your job easy.
How to get an auto loan approval with bad credit?
Doing your homework well in advance will make your life simpler. The very first thing you should do before applying for a loan is check your credit score yourself. Do not make assumptions and come to a vague conclusion.
You might be a loan defaulter or might have extended your budget, but let the lender decide if you are eligible for their loan. Improve your credit score and start managing your finances effectively. All of us make mistakes, but not everyone works towards rectifying one’s faults.
Check auto loans online, as it is not only easy but it will give you clarity on interest rates and EMIs. There are several websites that will also link you with a financial institution.
Lastly, nothing like getting a car loan pre-approved. It works best when you have a budget in mind. All you need to do is stick to it. This will help you look for your dream car in a more practical way. If you feel that the vehicle you are looking for is out of your price range, try and negotiate. Good negotiation skills can get you what you desire.