Getting a Car Loan with Bad Credit and No Cosigner
- May 20, 2021
- Uncategorized
- Posted by mangoboss
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Buying a new vehicle can be quite expensive and getting a helping hand from a relative, friend, or benefactor can go a long way. That’s why co-signing is an option people fall back on when applying for financing.
But if you had a string of bad luck leaving you with a bad credit score then it can seem like there are not a lot of options available. Car dealerships would look at you with caution or just deny your financing options out right, depending how bad it looks.
If this sounds familiar, you aren’t alone. There are options available, and ways at getting a car loan with bad credit and no cosigner.
What Qualifies as Having Bad Credit?
Bad credit can happen to anyone, it happens when you fall below a certain credit score. If you fall under this category, then your chances of getting approved for financing are lowered but not gone.
Subprime lenders are always an option that allow for lenders to offer financing at a higher interest rate. This means that people in desperate need of a car will be able to purchase one and help themselves out of their situation. This also gives them a chance to rebuild their credit score given that they make all payments on time without missing any.
What Qualifies someone to be a Cosigner?
A cosigner can be any individual that has an excellent credit score. The lending agency (aka a bank or loan officer) will take the cosigner’s credit amongst other factors into consideration. A debt ratio calculation helps determine how much of a risk you are for the bank. Based on that, they can determine if they will offer you a loan while weighing whether or not they are able to be paid back in full.
Improving your Chances of Getting Financing:
If your co-signer does not have a sufficient credit history to assist you and is not an ideal candidate to co-sign with you, there are many other options available. Even though you may have bad credit, here are a few ways to help improve your credit situation:
Focus on improving your credit score. This can be done by:
- Paying bills on time
- Paying off debt
- Paying off Outstanding payments
- Honoring new credit obligations
These can help build-up a positive credit score over time. But what if you don’t have time to build-up your credit score? There are still a handful of lenders that will approve you with bad credit.
Show Steady Income
Showing steady income can help create confidence for the lender. If you are working a stable paying job and able to make the minimum payments, then most lenders will at the very least know that you are able to cover the cost. This is usually done by providing a pay stub to prove your income.
There are Subprime Lenders that are willing to help
Finding a willing and genuinely supportive subprime lender will work with you and try to find solutions to consolidating or scheduling a payment plan that fits for you. This means that they will take into account all of your efforts to improve your financial position, will be kinder to your situation and be more flexible with what they can offer. We at Drive Mango have built relationships with a long list of lenders and can help you navigate through these waters.
Look for Ways to Offer a Down Payment
If you are able to provide a lump sum payment, it can reduce your overall term payments and increase trust with your lending agent. So if you’re financing for 72 months, providing a downpayment can reduce your overall monthly costs making it much more affordable monthly and prove you are able to make payments. Any amount of downpayment will help and could make all the difference when applying for financing depending on how severe the situation is.
It’s important that even though subprime lenders are more willing to be flexible, they are still looking to reduce their lending risk. This means that interest rates will be higher than average lending agents.
How to get a car with no credit or cosigner after you Looked at your Options
The next steps on how to get a car with no credit or cosigner involves you providing pay stubs to prove your income. This is vital for showing that you are able to afford payments and will be needed in the buying process of a vehicle. A helpful sales and lending agent will walk you through the steps and order for when you will need to provide it.
Looking for a Vehicle with Bad Credit and no Cosigner?
Being in this situation can be difficult and whether you have no credit and need a car or any of the mentioned situations, we at Drive Mango understand. Our team works hand-in-hand with dealerships and lenders alike to provide manageable financing and subprime options for those who need it.
Our Simple Process is simple:
- Fill out our Survey
- Get Approved
- Take Delivery of your New Car
We understand the stresses of trying to purchase a car with bad/no credit or no cosigner and our team is available any time to help you out.
