If you’re interested in shopping for new or used cars but your credit rating is abysmally low, all is not lost. You can acquire what is known as a pre-approval from credit unions or banks in order to get started on the process of upgrading your personal transportation. Pre-approval is basically a thorough evaluation that determines how much money a lender would be willing to grant you given your credit history. It takes a whole-picture approach to your credit evaluation and could make it much easier for you to get a good deal on bad credit car loans.
When you go for a pre-approval, the evaluator will look carefully at your income and your various expenses as well as your credit score. Because it takes into account so many factors, your pre-approval could paint a much more positive picture of your financial situation than a bare bones credit rating does. As long as you don’t undergo any significant changes to your source of income or your monthly expenses, you can use this evaluation to shop for bad credit car loans through your local dealership.
Since the pre-approval is meant to capture a wide variety of aspects of your financial situation, be prepared for it to take some time. It is possible that it could take up to a few weeks to be fully completed. However, once you have the documents outlining your financial situation, you will be able to take it to your local dealership to start the process of buying a new car.
It’s always important to remember that there are ways to overcome impediments to buying a new car such as a low credit rating. Bad credit car loans are always available, even if it might take a few extra steps to get a good deal. Fortunately, getting a pre-approval can significantly lower your rates on car loans with bad credit.