With a second chance auto loan or second chance leasing, you get to make a new start even if you have gone through bankruptcy. Though it is true that your rate is going to be higher than the rate of someone with an average credit, with second chance car loan approval, you have a chance to turn things around and improving your overall credit status.
How? You make a commitment to paying this loan back on time. This can be done with buying a new car with a new loan or refinancing your existing loan.
Unfortunately, many of the types of payments you make in your everyday life are the kinds of payments that don’t factor into your credit report. You might faithfully pay your rent on time every month, have automatic withdrawals for your utility payments, but these companies do not report your good behavior.
An auto loan, however, does. For people who are struggling with poor credit, second chance financing with subprime auto loans can be used to rebuild your low credit score faster than revolving credit as with credit cards.
- With second chance car financing or,
- Second Chance Leasing.
- Consistent on-time payments.
- You will see your credit score start to rise.
- In a short time, you will be eligible to refinance your second chance auto loan for a better rate.
- You can use all of the extra money that you are saving in interest to pay off debts or start building up your savings.
- Overall, you will be in a better position to qualify for bigger loans such as a mortgage, which can be less money than you are paying in rent.
Qualifying for a Second Chance Car Loans
When you apply for second chance auto loans through Auto Valley Loans, we know that you are going to have less than stellar credit. What we want to see is that you have a strong ability to repay the new car loan.
You will need to show proof of employment in the form of past paychecks.
The longer history you have had with your current job, the better. We offer many car loans if your income is below average and you struggle with bad credit.
2nd chance car loans require the borrower to earn at least $1,500 per month.
To qualify for a low-income auto loan program, you will need a gross income of at least $1,500 a month. This should include all forms of income you have including child support, bonuses, and disability payments.
We will also need to see that you have some bills that you have been paying on time. With all of this data, we will be able to match you to the best lender for your situation to secure financing to purchase a new car.
Fill out the second chance auto loan application fields completely.
Remember to fill out all the application fields completely and don’t leave any blank. This will improve your chances of getting the best loan terms and interest rate.
A co-signer can also help you get approved for one of our loans if your credit score is below 500.
Buyers Beware of Second Chance, Car Dealer Lots
If you need a car, and you are thinking about using second chance auto lenders to help build your credit, you need to be careful of local, used car dealer lots.
There are two types of “second chance auto loans” – ones that you get from a financial lender and ones that you get directly from the used car dealer. The car dealer loans are offered by places that say Buy here, pay here or Tote the Note. They could try to entice you with 0 down car loan offers or offer second chance leasing.
These dealer loans are not always good for you. Sometimes, they do not report to the credit bureaus, which mean that you are not getting any credit benefits from making your on-time payments with the higher interest rates.
If you want to build up your credit by using the best 2nd chance auto loan companies, you need to search for a lender who’s going to tell credit bureaus that you are doing a good job.
Quality financial institutions provided by Valley Auto Loans will report your history to the major bureaus, letting them know that you are turning things around. When other lenders see your recent history of on-time payments, they may be more likely to work with you as well as helping you repair your credit.
Building up your credit score to get better deals is a long process, but one that’s worth it. What you need most is a company that’s willing to work with you and get you started on the right path. That is why we offer to find, good quality second chance loans for you.
A Short, Simple Application, You Can Fill Out On Your Smartphone.
Valley Auto Loans features a simple and short application that is easy to fill out online, right where you are and submit by your smartphone. We offer second chance car loans, new or refinancing and second chance leasing. We will compare lending companies and find you good, second chance loan offers for that needed car loan. We know that you want to make things better through rebuilding your poor credit history and we are willing to take “second chance auto loans” on you.