Whether you have a bad credit or really worse credit rating and situation, you still get a great chance to own a car by availing instant approval car loans. Instant approval car loans do not deal with credit situation of customers actually. Rather companies approving such loans work on a simple principle that even the most stressful credit record bearing customers also must get a chance to own a car he dreams of while getting the proper chance to rebuild the credit rating. Hence, instant car loans are approved for customers without checking much on the credit records.
What if you don’t have a credit record at all
Even no credit record customers do get a loan for buying a car. As long as you prove your eligibility in all other ways you can always get an instant auto loan approval with bad credit or no credit. Instant auto loans open the gateway for you to own a car with any sort of credit history.
To get a bad credit car loan, some things must be in place. They are your residential status, and your income and employment status. As you are going to get a car loan for bad credit instant approval, you must be sure that you have a good residential stability. You must be able to furnish proof of residence, where you are staying for at least 6 months. You must also have proof of earnings too, and a proper employer certificate to prove employment with a stable income for at least 6 months.
When you get an instant loan, the pressure is on the lender to provide you the money without much check. This means they would like to feel secure from your end too. And that is why instant auto loans come with a higher rate of interest, especially when you are applying as a bad credit or no credit holder. The best way, therefore, to get car loans with bad credit is to put a big sum in down payment.
How to lower your interests
You can lower the interest rate for your instant car loan by paying a high amount in down payment. Paying a high amount in down payment will act as a security and help the lender offer you a lower interest rate. Actually the higher you pay as the down payment, the lower would be the interest rate and hence the EMI. And this way you will end up paying a lower premium for the loan. And once you gauge this, you can arrange to pay a high upfront.
Another way you may get a lower interest rate is if you take time to improve your credit rating first, and then apply for the loan. Your dream to buy that car may wait a few months this way, but you will pay a more reasonable amount towards the entire premium this way.
Another good way to lower interest rate is to get a co-signor or guarantor. A guarantor with a healthy credit rating should sign with you, and guarantee on your behalf that any non-payment made by you will be covered by the guarantor. Also if you fail to pay the entire loan, the guarantor will pay all for you.