It can be frustrating when you love a car only to realize that you aren’t able to take it home with you since you are not eligible for financing because of your bad credit. One thing to note is that bad credit does not have a specific range. It’s an issue of opinion that if different from every moneylender. When one moneylender deems your credit to be poor another will place you in the subprime range.
Having bad credit record doesn’t imply that you will not be able to ever acquire a car. In spite of this, you are able to even get a new car even with your poor credit status, since many reliable licensed moneylenders are ready to approve your poor credit car loans.
Don’t give up hope yet, below are a number of tips that can help you get your car using a car loan even when you have a bad credit score.
Some Issues That Might Destroy Your Credit Rating
- Defaulting on your other loans, foreclosure, and bankruptcy.
- Missed or late payments
- No or little credit history
- Lots of existing debt
- Not having assets to act as collateral (a car or a home etc)
Confirm Your Credit Rating
Different moneylenders will have different methods when evaluating a borrower’s credit score, but to help give you a clue, it could range as follows:
- Excellent credit; 740-850
- Good credit; 680-740
- Acceptable credit; 620-680
- Subprime credit; 550-620
- Poor credit; 300-550
For you to be able to get your credit report’s copy, you only need to get in touch with Singaporean Credit Bureau Ltd and the DPC. Both of these credit bureaus are gazette as the only credit bureaus permitted by the Singapore Monetary Authority (MAS) to produce copies of your credit statement. Immediately after you have received a copy of your history, make sure you evaluate it to confirm to ensure that you do not fall into poor scores bracket.
To help give you a better point of view, you do have a possibility of receiving a personal loan as compared to those individuals having to rely on their credit history. When you are certain and ready to get an auto then you better plan to get a good car loan way before you start shopping for your dream car.
One thing to keep in mind is that your credit report may include your personal information (apart from your contact information), any default records (that is the unpaid debts), each and every credit checks made, bankruptcy records which will remain in your record for 5 years, your credit accounts, loan inquiries and outstanding balances, credit repayments made within the past 12 months.
Since you now know the things that affect your credit score, make an effort to find a few mistakes in your credit record and do fix them. The previous moneylenders, when you have a few, are the one who records all your payments. And it can happen that on some occasions they may fail to record your timely payments and get to only report the failure to repay on schedule.
When you come across some mistakes, be sure to get in touch with the credit bureau that had provided you with the data. The credit bureau will then post your argument on your credit record to indicate clearly that it’s under investigation.
Thereafter they will regularly keep informing you on the progress of this investigation. As soon as adjustment has been done, the credit bureau can then send you the modified copy of the credit statement to you as well as to the companies that made inquiries regarding your record within the past 3 months.
It is recommended that you take the time to shop around for car loans, however, be cautious with the period of the car loan inquiries you send out. Having too many inquiries will certainly bring down your credit rating further. For this reason, try to apply for a personal loan after 14 days, as this will be reflected in your history as one solid inquiry.
Also, ensure that you compare your rate of Annual Percentage (APR) for the car loans rather than looking at the low monthly payment it has. When you only focus on monthly interest and payments, you may not make out the bigger picture that you will be paying a lot more than you should. Don’t get trapped in making the personal loan period much longer only to have lower interest for each month, eventually, you may be paying extra in interest.
Always bring with you someone when you go to a moneylender’s office. The companion may act cynical or unconvinced and can even pose questions that you will have overlooked. Some moneylenders possibly will want to convince you into taking the highest possible interests that they can offer, but your friend can help negotiate for you when you do not have the nerve.
As soon as your credit is in good standing, be ensuring you keep track of the credit report. Also, make certain that your payments are recorded well to avoid mistakes. When you can, by making your monthly payments in full. When you would like to settle your cash loan earlier than it’s time period, confirm you will not incur penalties. Some moneylenders do charge prepayment penalties. When you choose to have several loans, it can be helpful that you have it with a single provider. In so doing you will easily be able to track your outstanding dues and payments.
Because your credit record is bad doesn’t mean you have to forgo owning a car. You simply need to do work more, but in the end, it will pay off. Once you get a cash loan to suit your financial standing and need, confirm the amount you can spend on your car. Select your car prudently. Rather than choosing based on style, pick based on your need. Car loans for individuals with bad credit are available; just take the time to research.