Everyone wants to improve their lifestyle and people love to own the best things like branded clothes, fine dining, luxury car, and a luxury apartment to live the rest of their life. Today, you can avail of such facilities with the help of credit cards or loans. For example, fine dining and buying furniture can be done by credit cards and you can pay the amount into small EMIs. Likewise, you can buy a new car or an apartment with the help of credit cards or home loan schemes. But, in the case of a card or home loan, lenders will disburse the amount on the basis of your credit score. If you have a bad credit score then you need to apply for the car loan to private lenders. They offer such loans online and you can apply for the car loans with bad credit score through their official website.
- You can apply for the car loan to banks or nonbanking financial companies. They will check your documents and credit score before they approve your loan.
- You may need to pay a higher rate of interest for car loans with bad credit scores, and it is better to compare the interest rates of different lenders before you apply for a loan.
- In this case, you can find some online portals where all the lenders including banks and NBFCs listed and you can find all of their products on such websites. You can easily compare their interest rates and choose the best deal.
Eligibility criteria for Car Loans with bad credit scores:
Before applying for a car loan, you must check your credit score and if you find any dispute in your credit history then you must repair the same before you apply for a loan. For example, you can clean all your debts and taxes to repair your credit history and you can submit such documents to the bank along with your loan application. Here you can find the minimum eligibility criteria for car loans:
- Applicants must be a minimum of 20 years to a maximum of 65 years of age.
- Applicants must meet the minimum annual income criteria. Each lender has different requirements and you need to check their eligibility before you apply for the loan.
- For the self-employed applicant, he or she must have at least one year’s experience in this field.
- Salaried people must have at least two years of work experience.
If you have a car loan bad credit score then you can ask your bank manager about ways to rectify them. You can check your banking dashboard and if you find any similar offer for car loans then you can directly apply for the pre-approved car loans. The pre-approved loan can give you security and you just need to submit your approval letter to the dealer to take your car. Apart from that, you can reduce the interest rate of your car loans bad credit score by making the maximum down payment. Normally, you need to make a 10-20% down payment for a car, but if you have a poor credit score then you can make 30% or more as a down payment. It will reduce your interest rate.
How would you apply for a Car Loan?
- Online: you can find various banking websites where online applications for car loans are available. You can directly fill up their online application form and submit your scanned documents. They will recheck your documents and disburse your loan accordingly.
- Offline: you can visit any bank that offers car loans bad credit. You just need to submit your documents and fill up their application form to avail of their car loan.
You can even apply through dealers and can find some kiosks in the car showrooms that are operated by banks or private lenders.