Repairing bad credit or establish credit can be a difficult task when most lenders are not willing to give you a second chance or let you prove yourself credit worthy.
We Offer tips and advice on the different tactics to build and repair credit scores. Even with bankruptcy, we can help you get on the road of having excellent credit and allowing you to enjoy the benefits of low interest rates and the buying power to succeed in life. In this free consumer guide to bad credit repair, you will find out which lenders will approve you for credit cards, car loans for a new or used vehicle, mortgage loans, unsecured personal loans, and even a checking account.
How long will it take to get a good credit rating
Establishing or repairing bad credit can take some time and you must be patient. It may take up to a year if not more to fix or repair credit from bad to good. It all depends on how bad your current credit situation is. On the upside, your credit score will improve monthly as you pay your monthly payments on time, removing past due amounts and collection accounts.
Obtaining a Car Loan with Bad or No Credit
Your credit rating plays an important role when trying to obtain a car loan. Credit scores range from the lowest at 300 to the best of 850. Having a credit score over 700 will most likely get you approved for your new or used vehicle and will come with a favorable annual percentage rate.
For people with a credit rating below prime, some car dealerships have programs available that can get you financed even with a less than perfect credit score, past bankruptcy, bad credit or having no credit history at all. One downside to these subprime car lenders is they will come with a higher interest rate which will increase your monthly payment and the amount you will pay in total over the life of your loan. The other con of these types of loans is that you may be required to apply a larger down payment.
Tip: When searching for a car with bad credit, it is easier to obtain car financing for a new car than a used one. Also, if you decide to buy a car now under subprime financing terms, wait about 6 months after you have financed your vehicle, and then refinance the subprime car loan at more favorable terms.
For individuals with a terrible credit rating, there are car lots or dealerships that offer buy here pay here programs for used cars. We highly recommend to only using them as a last resort. These buy here pay here dealerships tend to charge an excessive amount of interest and/or like to mark the price of the car up to nearly double. This is how they are able to approve anybody for a car with no credit check. If you do use them, make sure you check the bluebook value of the vehicle before you sign any agreements or apply a down payment.