Is It Possible to Get an Auto Loan with Poor Credit?

A person’s credit score follows them throughout life. If the score is not where it should be, individuals can find themselves being turned down for certain types of loans. When a person’s credit score is lacking, they have the option of seeking help from Consumer Portfolio Services. Getting an auto loan is not impossible, even with poor credit or discharged bankruptcies.

How to Get Started

To get started on the process, it is first important the individual checks their credit score. The more a person knows about their score, the better equipped they will be to seek the right lender. There is a lot of information available on the credit report.

Individuals need to check all entries and ensure they are valid. If there are any mistakes, these need to be reported to the creditor and Credit Bureau right away. While some negative credit entries can stay on a person’s record for as long as ten years, most fall off within seven. Old or erroneous items should be removed.

If an individual has a lot of unpaid accounts, it would be wise for them to start paying on the old debts to improve their score. When items are paid off, the creditor reports the accounts as paid and this can help raise the individual’s credit score.

Fill Out the Paperwork

When applying for an auto loan with bad credit, it is wise to take time and research lenders. Getting pre-approval will cut down on wasted time and embarrassment. With pre-approval, individuals will be able to discover their ability to seek a loan before they even sit down with a lender.

Many lenders allow individuals to seek pre-approval online. Within a few minutes, individuals can learn if they qualify. Although the interest is typically higher on high-risk loans, as a person’s credit score improves, they will be offered better rates.

If you are seeking an auto loan with poor credit, it is important to be aware of your options. Check out the website today to get started right away. CPS will be happy to help you in the process and answer any questions you may have.