Never Settle For Bad Credit !

( No Credit )

Are you just starting your undergraduate studies or simply have no credit because you’ve never had any bills or credit cards in your name? Well, there’s no need to panic. Not having prior credit may impact the interest rate on your car loan, Bad credit auto loans is nod a bad option it's only a stepping stone to building your credit. But it shouldn’t stop you from being able to obtain a car loan. If you fall into this category try to find an auto loan company that understands your credit issue (or lack thereof). Help Me With My Down Payment has a team of highly trained individuals ready to answer your credit questions. We service all of California and our we help our community locally in North Hollywood. We will help you get approved for a certified used cars for sale.

New to the United States 

Are you new to the United States of America? First of all, welcome! Now, we know that one of the first big purchases that you’ll make after you’ve settled is a car. With our bad credit auto loans program and our down payment assistance you will for sure be able to buy a certified used cars for sale. Obviously, being new to the country means that you likely have little to no credit. Again, this should not hinder your ability to obtain a car loan. Help me with my down payment recommends that when you’re starting the application process, you should have the necessary documents ready. The documents required include your landing papers or permanent residency card, your driver’s license, your Social Insurance Number (SIN) and proof that you’re making at least $1500/month (proof of employment can be verified using pay stubs from your employer). If you’re new to the country and are still unsure about how the car buying process works here, contact us today, and a member of our staff will be happy to answer your questions (818)579-4022. Stop by our office we are located in North Hollywood.

Bankruptcy

The US government defines bankruptcy as a “legal process that can provide relief to honest but unfortunate individuals who are unable to pay their debts.” A lot of consumers include their used cars in the bankruptcy. A bankruptcy may be the only option for some individuals who really have no way to get out of their debt crisis. Even with a BK on your credit our bad credit auto loans program can help you. According to the Financial Consumer Agency of United States of America, a bankruptcy will remain on your credit report for six to seven years from the date you’re discharged, possibly impacting your ability to secure a vehicle loan in your name.  It’s important to work with an auto finance company that understands how bankruptcies work and how best to get you approved for a car. Have you declared bankruptcy in the past? Are you worried about your ability to secure a car loan? Help Me With My Down Payment has a great deal of experience working with customers who have declared bankruptcy, so visit our website to fill out an application or contact us (818)579-4022 with your bankruptcy questions. We get our funds from local churches in North Hollywood that know how important it is for the community to be able to have funds to buy used cars for sale.

Consumer Proposal

A consumer proposal is different from a bankruptcy in the sense that you do have to pay back some of the debt, without having to sell all of your assets. No matter the situation you may be in the down payment program and the bad credit auto loans program will be able to find certified used cars that fit your financial needs. According to the Government of the United States of America a consumer proposal is a legal agreement created by a licensed insolvency trustee, involving you and your creditors. The trustee creates a proposal to be presented to your creditors that outlines the percentage of the debt that both parties (you and the creditors) agree that you will pay back. A consumer proposal typically remains on your credit report for 3 years after you’ve completely paid off the debts included in the proposal.

 Many people think that a consumer proposal will prevent them from being able to obtain a car loan, but that’s just a myth. As with bankruptcies, it is crucial for you to work with an auto finance company that understands your particular credit challenges. If you’ve previously filed a consumer proposal and are in the market for your next vehicle, the team at Help Me With My Down Payment is ready to help you. Fill out an application here today. Or stop by so we can walk you through the application in person. Our corporate office is located in North Hollywood. We work with dealerships that offer pre owned used cars for sale,

Difference between credit scores and credit reports

Your credit score is not the same as your credit report. Credit scoring companies use the information on your credit report to determine your credit score. A credit report documents your credit and payment history. It’s the information contained within your credit report that determines your creditworthiness and,

consequently, your score. Anyone can obtain their free credit report from Annual Credit Report (annualcreditreport.com) or directly from one of the credit bureaus. It’s important to regularly check your own credit report to spot items that could inflict long-term damage on your credit. Lenders look at one of three credit reports, so make sure the information is correct and that it matches across agencies.

How are credit scores calculated?

Every score is based on information gathered by the major credit bureaus: Experian, Equifax, and TransUnion. These credit reporting agencies gather data from credit card companies, financial institutions, and lenders to create a report. Credit scoring models analyze the credit report information and assign value to each factor. Depending on the model, some factors will be highly influential while others only account for a small percentage of your overall score. As a result, different scoring models will produce different credit scores, even if they reference the same credit report. 

What Is a Credit Score?

A credit score is a three-digit number used by lenders to assess your creditworthiness. Credit scores let lenders and creditors know how much of a risk you pose as a borrower, indicating your ability to pay your bills on time. This number guides their lending decisions on credit limits, loan terms and interest rates.

Increase your chances of getting a car loan

Here are five things that we think you can do to improve your chances of getting a car loan despite your credit situation:

                   1.   Know your credit score 

The Wall Street Journal reported that a Bank of America survey revealed that approximately 56% of Americans have never checked their credit score. When your getting ready to purchase certified used cars hopefully your score is high enough to avoid bad credit auto loans, It’s really important that you check your credit score regularly and now, there are websites like Experian that will let even let you check your score for free. After you’ve applied for a car loan, lenders will first complete a credit check and it’s never fun to be unpleasantly surprised by the results. If you’re aware of your credit score prior to applying for the car loan, you can figure out what your likely classification will be (deep subprime to super prime) and then estimate what your likely interest rate will be. Using this information, you can plan out your monthly budget for the car and find a vehicle that fits comfortably within this budget. Knowing your credit score can help you make a more informed decisions about your next ride.

                2.   Pay off outstanding bills

If you know that you’ll be applying for a car loan in the near future, do your best to pay off any outstanding bills or make payment arrangements. To appear less risky to lenders, make regular payments on the bills and loans that will appear on your credit report. If they see that you regularly make payments, then they’ll be more likely to approve your loan, since you seem less likely to be delinquent on the car loan.

                 3.   Keep your options open

Just because you may have bad credit, no credit or a bankruptcy or consumer proposal to your name, don’t feel obligated to accept the first approval for vehicle financing that you receive. It’s your money, so shop around for the best deal, and you may just find another lender willing to offer you a much better interest rate. Lenders grade the cars based on the year, make and model of the used cars for sale. 

                 4.    Make your vehicle selection wisely

You might be tempted to think that if you select an older model vehicle with higher mileage, you’ll be more likely to get approved for your car loan because it’s the cheaper route. Well, that’s not the case! If you decide on going the cheaper route with an older model vehicle, you may be less likely to get approved and even if you do, you’ll probably have a higher interest rate on the loan, since an older vehicle presents a higher risk to the lender. To lenders, an older model vehicle with higher mileage is not considered to be as reliable than a new vehicle; it’s more likely to be in need of repairs and if you’ve already got bad credit, lenders fear that you’ll default on the car loan once problems with the car arise. In order to improve your chances of getting a car loan with bad credit or no credit at all, it’s best that you opt for a newer model vehicle with lower mileage.

                 5.   Keep the 20/4/10 rule in mind

According to a June 2022 report from J.D. Powers Americans are paying roughly $600 monthly towards their car loan. If that seems, like a large amount to be spending monthly on your car loan, we understand. With an average like J.D. Power has presented, it’s important to remember that there are some people who are paying much less than $600 per month, while there are others who could be spending over $800 per month on their vehicle loan. If you’ve already had credit challenges and are mindful of your budget this time around, use the 20/4/10 rule to figure out a payment range that fits within your budget. Our live financial underwriters work out of our main office located in North Hollywood.

Here’s the 20/4/10 rule breakdown:

20 Plan to put a 20% down payment on the car, why it’s important to work with Help Me With My Down Payment. 4 Avoid financing your vehicle for a term longer than 4 years. 10 Make sure that your monthly loan payment plus your insurance payment does not surpass 10% of your gross income for the month.

According to Bank of America, auto loans are the source for approximately 15% of consumer debt. Unfortunately, their research has also found that delinquency rates have gradually been increasing. While it’s preferable to have your own vehicle for transportation, make sure that you’re financially able to manage your car loan. If your budgeting skills fail and you end up stuck with a car loan that you can’t pay off, be aware that lenders will send a repossession crew to pick up your ride. Once the car has been sold at the auction, you will still be responsible for the remainder of the loan amount. Simply put, if you owed $16,500 on your car loan and the car was sold at the auction for $10,500, then you’d still be in the red, owing the bank another $6,000. Bad credit auto loans is not a loan term option, once you make 12 payments you need to get out of the loan. We work with credit unions located in North Hollywood that will assist with the refinancing process. We have access to a A plus line of pre owned used cars for sale.

Lenders will approve car loans for individuals with credit challenges like we’ve mentioned here, but they will not lend to those who make a habit of accumulating debt and defaulting on loans. It’s important that you budget for your next vehicle loan carefully. Once you’re approved and the car is delivered to you, make sure that you make regular payments towards your car loan. By doing this, you’ll appear less risky to lenders in the future, your credit score should increase and you should be able to refinance at a lower interest rate within 12 months. 

How Do Credit Scores Work?

Credit scoring models analyze credit reports from the three major credit monitoring agencies and assign a score to the consumer based on that data. There are different credit scoring systems available, and each lender will favor one over the other. Some are for general use, while others are tailored to specific lending industries like mortgage and auto loans. 

The most widely used are FICO (Fair Isaac Corporation) and VantageScore 3.0. Both FICOand VantageScore provide free credit scores and tools that help identify bad credit and create personal finance plans. Both FICOand VantageScore provide free credit scores and tools that help identify bad credit and create personal finance plans.