Getting an auto loan without a good credit score is extremely difficult.
What qualifies as a good credit score? A credit score that is above 600.
But, why is a good credit score needed in the first place? In the financial world, a person’s credit score determines how financially responsible a person is and how likely the borrower is to return the money.
Is this system flawed? Heck, yes. A credit score does not take into account the financial or emotional troubles you are dealing with, whether a loved one is in an accident, or you’re going through a divorce. In short, the financial and credit system is not perfect.
Why do you have a bad credit score?
This is a question many auto loan seekers ask when hunting for a loan.
Missing Monthly Payments
The most common reason for having a bad credit score is missing the monthly debt payments. Every missed monthly payment is noted in your credit history and this does not look good in your credit report.
Additionally, the longer you miss monthly payments, the more debt you gather, until you ultimately default on the debt.
Bankruptcy
Making a bad investment or just having too much debt can leave you with no option but to file for bankruptcy. In the financial world, bankruptcy is a black mark that is recorded on your credit report and negatively affects your credit score.
Divorce
Divorce can leave you with bad credit because of the financial and emotional turmoil that it puts you through. Emotional distress will result in making debt payment a low priority, while you rack up charges from the lawyer, and your finances get spilt with your ex-spouse.
The Problem with Many Auto Loan Applications
Getting an auto loan with a bad credit score is tough. Most financial institutions will refuse your loan application. You can try applying for a loan at your bank and other financial institutions.
However, putting in too many applications for an auto loan poses a problem.
The more places you apply for an auto loan, the higher number of times these organizations will request for your credit report. This high number will have a negative effect on your credit history and score.
What Can You Do?
Your best option instead of trying out various financial institutions, and further damaging your credit score, is to apply to one place who will guarantee to give you the car loan. Insta Auto Loan does just that.
The application process is completely simple and entirely online. Once you type in your details, your application is safely stored. Within 24 hours, your auto loan will be approved by Insta Auto Loan. Your car loan application will be approved irrespective of whether you have a bad credit score or are bankrupt.
Also, this gives you an opportunity to improve your credit score by regularly paying your monthly payment without fail.
