Securing A Loan With Bad Credit


This may be the best time in the history of the loan industry to purchase a new vehicle, new home, or luxury item (RV, Plane, Second Home, Etc.). You can get a great deal right now, but the problem is, since the economy took a turn for the worse and the banking industry and bailout crisis, financing is more difficult to come by. Four years ago if you had a credit score of a 680 or above you could easily obtain financing, but now most lenders will not even consider you if your credit score is not a 720 or higher.

There are several factors that will determine your interest rate.

  1. Your down payment or collateral will affect your interest rate. The more money you pay down, the more comfortable the lender will be.
  2. The term of the loan will affect the interest rate. Some lenders charge a higher rate if you want extended loan terms.
  3. The amount financed will affect the interest rate. The lower the dollar amount the higher the rate, the higher the dollar amount the lower the rate.
  4. Your credit history (credit rating or score) will affect the rate. The higher your credit score is the lower the interest rate will be.

Can I Get Financing With Below Average Credit?


Subprime lending is what got us where we are today! Loans are now structured differently so the criteria for financing can vary with the item being financed.


How Is The Interest On A Loan Calculated?


The majority of auto loan lenders are simple interest, fixed rate loans. This means you will only pay interest on the principle owed, and in most cases there is no penalty for paying the loan off early. If you choose to pay more than your required monthly payment you can shorten the term of the loan and save on interest.

What Can I Do To Prepare For A Loan Application?


Start with your credit rating. We can guide you through a process for improving your credit score in just a few months. With a goal of 720 in mind, you’ll be able to go to most lenders with confidence!


Will I need a down payment and if so how much?


Down payments vary between lenders but 10 to 20% down, in the form of cash or a trade-in, is usually the range. There used to be programs that offered low down, or no down payment but these programs are not as common as they once were and they can increase the interest rate. Most banks are going to want you to have some cash in the deal.


What are the Costs of the Program?


An initial consultation and credit pull fee of $299 will begin the process. Then $99 per month keeps our consultants on your credit improvement cases until you’ve achieved your goal or you decide to end the program. There is no long-term contract or obligation on your part.


Where Should I Begin?


Fill out the form to the right to get started or call. Our team of expert consultants can guide you through a step-by-step process that will put you in a position to have a successful loan application process.