Car loan with a bad credit score - here is a guide!by Emily John Digital Marketing Service Provider
Having a bad credit score scares us to get a dream vehicle. Isn't it? Well, there is a solution out there to get this sorted. Getting a car loan with poor credit scores is a tricky task. Let us discuss what a credit score is and how to get a car loan for bad credit instant approval if you have a low score.
The bigger the number, the better the score. The credit score is calculated based on your credit history: e.g., previous loans, repayments on credit card bills, and other EMIs, etc.
It is always recommended to get a better score to get a car loan, especially if planning for a big-budget car. But the good news is, even with a bad credit score, there are chances of a bank or NBFC approving your car loan application.
Here are specific ways which will help you the best:
1. Apply for a loan from an NBFC
If you have a low credit score, you can still apply for a car loan from an NBFC as they have more flexible policies towards customers with low or no credit scores compared to traditional lenders. However, the interest rate is more in case of car loan for bad credit instant approval.
2. Bring a cosigner on board:
A cosigner is a person who takes the loan along with you, and he/she is responsible for making the car loan for bad credit instant approval if the primary borrower fails to repay it. However, you can choose a cosigner with a good credit score. It can also reduce the interest rate.
3. Prove your income can support EMI payments:
If you have any additional income sources like businesses, rentals, etc., you can still prove that you are financially sound to repay the loan on time. In case of car loan for bad credit instant approval, this is the best option.
4. Apply for a secured loan:
There is another easy way to get a car loan and to secure the loan repayment. It is called collateral. It could be anything such as your gold jewelry, private property, fixed deposits, or other valuable assets which you can use.
You need to build the credit score for a better one by paying the credit card bills through EMIs to avoid late payments. Too many rejections on this can lead to a low credit score.
Created on Jun 5th 2021 11:09. Viewed 39 times.