Today owning a car is the dream of the younger generation and purchasing power has also improved significantly. They want to enhance their status in society and upgrade their lifestyle with all the luxurious things in their house. To avail of all the facilities they require a huge amount of money in their bank account, and in the lack of funds, applying for a loan is most common among them.
Like our other vital requirements, the car is also essential for living in a prestigious society and for visiting anywhere whether your relative’s house or the market, you need a car.
You want to purchase a car but what if a poor credit score pushes you back? Then how will you get car loans for bad credit?
To answer all your questions along with some tips to buy a car without worrying about your credit score, we are here. We are going to provide you with the ways to purchase a car with bad credit in the given post.
Eligibility Criteria For Car Loan
Before moving to the tips for bad credit car loans, check the eligibility criteria for buying a car.
- You must be between 21 years to 65 years old.
- You must have at least two Lac annual income
- For an employee in any company, at least 2 years of and for the self-employed person at least 1 year of experience is required.
How Can I Get a Car Loan with Bad Credit
No doubt, a large number of Indians have poor credit scores or do not have any good credit history, but still, they can get a bad credit car loan as some lenders are offering new offers to them. Just a good offer is not recommended. You need to keep all the aspects of the terms and conditions of the lenders. Check it out
- Check your Eligibility
Make sure you are eligible to take a car loan. To get a bad credit car loan, you may have to pay more interest rates than with a good credit score. So, before applying for a car loan try to improve your credit score by paying off the earlier dues and debts of the lender.
- Compare the Interest rates of the lenders
Don’t forget to compare the interest rates for different financial institutions and go with the lowest interest rate lender. Because a lower interest rate makes you pay lower EMIs.
- Offer to Pay a large down payment
The best way to get car loans for bad credit is to offer your lender a large down payment to make them trust you. Many financial institutions cover only 80% of the total cost of the car rest amount you have to pay at the time of purchase.
- Work on Improving Your Credit Score
A credit score is a three-digit number that defines your creditworthiness and helps lenders to evaluate your capacity to pay. Then they can give you a loan for purchasing anything. The credit score is evaluated on the basis of your previous record of loan repayments and many more credit values.
By improving your credit score you can get loans easily at lower interest rates.
For more information you must visit the site Accountiod.com once.