Securing an Auto Loan with a 500 Credit Score and Only $500 Down – Valley Auto Loans Blog

Securing an Auto Loan with a 500 Credit Score and Only $500 Down

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The stock market may be soaring to record highs, but there are still plenty of hard working people without stellar credit scores or thousands of dollars to put down on a luxury, sporty, or just plain old reliable car these days.

No matter how hard you work, the reality is it’s all too easy to blemish your credit score these days. With unemployment and wage stagnation still crippling much of the country, more and more people are finding themselves in need of a new vehicle, but they lack the money and credit score typically needed.

There are a million reasons why you may find yourself in desperate need of a new vehicle. Perhaps one of the following common reasons applies to you:

  • Your existing vehicle is in desperate need of expensive repairs.
  • You desperately need to experience the freedom of your first car.
  • The lease on your current vehicle is about to end.
  • You lost your vehicle due to a bankruptcy or divorce.
  • Your son or daughter is about to turn 16.

The list of reasons to suddenly need a car can go on for miles, but the point is you never know when that time will arise, and your credit score or financial situation may be caught off-guard.

Nearly anyone with good credit can stroll right onto a car lot, pick out a vehicle, obtain 100 percent financing with no money down, and drive off into the sunset in under an hour. However, if your credit score dips below 640 into the “poor” or dreaded “bad” category, the process can be a little trickier, but it’s far from impossible!

Whatever the reason may be, the fact is, you need a bad credit auto loan for little or no money down, and you need it now. Thankfully for you and millions of others, help is just a click or two away. Valley Auto Loans specializes in connecting ordinary consumers with less than stellar credit scores and little money for a down payment with respected auto dealers.

Getting a Car Loan with a 500 Credit Score

Most banks and traditional lenders have set a credit benchmark of 640, and if your credit score is closer to 500 than it is 600, boosting your score up into the 600s and beyond can seem nearly impossible. However, you’re far from alone as millions of Americans have taken a credit hit in recent years. Noticing this trend and eager to help, Valley Auto Loans filled a vital need in the marketplace by connecting cash-strapped consumers with poor credit scores just like you with reputable dealers specializing in financing these credit scores.

Although many people are once again getting a hold on their finances, the lingering effects of the recent recession are still affecting millions of hard working Americans. Sure, many have found employment, overcome foreclosure, and are now making all of their monthly payments on time, but blemishes on their credit reports still linger, dropping their scores lower and lower.

Even if your financial position is much better now than it was a few years ago, if your credit score continues to be a sad reminder of your recent rough financial times, you’ll need to secure bad credit auto financing. Millions of consumers have applied for bad credit auto financing in the last two years alone, and Valley Auto Loans has been there every step of the way, helping ordinary consumers receive the car of their dreams with bad credit and little to no money down.

Everyone was affected by the 2008 financial meltdown and the recession that followed in some way or another. Recognizing this, some lenders are approving auto loans for individuals with no money down and improving credit scores. Therefore, the more your bad credit score keeps improving, the greater your chances of being approved for the auto loan you need.

You can review your credit report for free once a year, and if you have yet to do so, you should check it as it can be a valuable tool when identifying lenders and financing opportunities. After receiving your credit report, carefully check it to ensure there are no errors. If you do find errors, you should contact the credit bureau to have them corrected.

Although Valley Auto Loans specializes in connecting people with no money down and 500 credit scores with auto lenders, you should make it a habit to regularly review your credit report during and after the credit rebuilding process.

Buying a Car for Only $500 Down with Bad Credit

If you have good credit, it’s definitely possible to purchase a new car with a down payment of as little as $500. However, if you have bad credit, purchasing a new truck, car, or SUV without a large down payment is much more challenging.

Thankfully, there is an endless sea of quality pre-owned vehicles to choose from if you’re working with the right dealers. By securing a bad credit auto loan, or a rent to own option, you can purchase a quality pre-owned car for only $500 and take advantage of an array of benefits, including:

  • lower principal
  • lower monthly payment
  • lower interest rate

Many people with bad credit fall victim to the misconception that they can only afford a high mileage car from a shady used car lot, but there are a ton of like new pre-owned vehicles available for people with credit scores below 600 and only $500 down. In fact, many car dealerships throughout North America have terrific selections of low mileage, late model used cars, trucks, and SUVs to choose from. Since their reputation is at stake, they make sure any pre-owned vehicles that leave their lot are fully inspected, serviced, and certified safe.

Additional Tips for Securing Financing with Bad Credit

Although securing an auto loan with a credit score of 500 and only $500 down can be easily done by submitting a quick and easy application with Valley Auto Loans, here are some additional tips that will help you secure financing for your next car if you fall under the bad credit category and want to avoid exorbitant interest rates:

  • Review your credit report, know your score, and correct any errors that may exist on the report.
  • Try not to make any late payments at least six months prior to applying for auto financing.
  • Limit the number of loan applications you make, because too many can negatively impact your score.
  • A newer car with a shorter loan term may provide a lower interest rate.
  • Don’t close any credit accounts. Many people make the mistake of closing out their old and unused credit accounts, but this only shortens their credit history, reduces their percentage of available credit, and lowers their credit score.

If you have questions right about now, don’t worry, because the professionals at Valley Auto Loans have years of experience dealing with bad credit auto loans, securing the best possible interest rates, and working with dealers with direct access to the credit markets to provide you with the auto financing you need. Our network of dealers includes dealers you know and trust near your town and financing experts to help you secure the loan you need to purchase the vehicle you want.

Getting Approved

As you can clearly see by now, having a credit score below 500 and only $500 for a down payment doesn’t mean it’s impossible or difficult to secure auto financing. In fact, thanks to Valley Auto Loans, the process is quicker and easier than ever before. Did we mention it’s also free?

Don’t waste another moment when you could be getting approved for a new car today! Simply fill out a convenient online loan application to get pre-approved and find out how much you qualify to borrow. Then, Valley Auto Loans will arrange for you to be contacted by a local dealer in your area and make an appointment to visit them in person.

It’s as simple as that. All you have to do is stroll down to the lot, pick out your favorite car you know you can afford, sign on the dotted line, and drive off into the sunset in your new chariot! This means there’s no need to visit car dealer after car dealer until you find the right financing and the right vehicle for you. From start to finish, the entire process can be conveniently done in under a day.

If a poor credit score and a lack of a down payment have you down, a special financing company can help you drive off the lot with a shiny new ride and brighten your day. By specializing in helping people who are denied time and time again by traditional lenders, Valley Auto Loans can help you be approved for a car loan only a few minutes from now. Today, bad credit and no money down is no longer a problem!

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Securing an Auto Loan with a 500 Credit Score and Only $500 Down by Jordan L Bourland