1. Set a budget and stick to it. Sit down with a spreadsheet or a paper and pen and really take a hard look at your monthly budget. Whether you’re paying cash for your first car or looking to finance it, there will be new monthly costs that come with your new wheels. Get insurance estimates on a few models you are considering. Don’t forget to factor in the cost of gas and maintenance. Unless you’re buying a brand new car, you’ll also want to put a little money into savings to cover any needed repair costs, when they arise. Once you know how much you can afford, be sure to stick to that figure, even if a shiny vehicle tempts you to overspend.

2. Shop around. Thanks to the Internet, there is absolutely no reason for anyone to buy an overpriced car. Check dealership websites, Internet car sales search engines like Cars.com, and even Craigslist. If you have a specific make and model in mind, you’ll get a good feel for a fair price. If you simply have a budget and no idea what kind of car you want to buy, you’ll soon see what types of cars your money can buy for you.

3. Be wary of scams. Although the Internet is an excellent resource for car shopping, if a car sounds too good to be true, it likely is. Be wary of car selling scams where the buyer is out-of-state and will not let you personally inspect the car first.

4. Ask for the CarFax. If you’re buying a used car, be sure to get a CarFax report or similar vehicle history report. Although that car make look beautiful on the outside, you’ll want to know if it’s been in an accident or if there have been serious mechanical problems. A history
of numerous owners owning it for only short periods of time also may be an indication of problems with the car.

5. Take it to a professional. If you’re buying a new car, for your first vehicle, you have a warranty that will protect you should you have any immediate mechanical problems. However, if you’re looking at a used car, have a mechanic take a look at it, before you make the purchase. This way you can be more aware of any potential problems that aren’t immediately apparent to the untrained eye.

First, when choosing a co-signer, select someone who has good credit. A co-signer with poor credit likely isn’t going to be any help in securing your car loan. This is because a co-signer isn’t simply giving a reference for the primary signer of the loan, instead they are actually promising to repay the loan, if the first signer doesn’t pay it. Therefore, the bank looks at the co-signer as if they were the ones getting the loan.

This factor is one of the biggest things car buyers with co-signers need to understand. Even if the original signer has a good job and is very responsible, unexpected challenges can come up. If the primary signer loses their job, gets sick or injured and is unable to work, or even dies and is unable to make their car payments, the co-signer will be expected to make the remaining payments on the car loan.

If the primary borrower defaults on the loan, the bank can go after whichever signer they want. They don’t have to try to collect payment from the primary borrower first. They can choose to go directly after the co-signer. Since the co-signer often has the most to lose financially, especially as their good credit history will be ruined, it’s not uncommon that the lending institution will go directly after the co- signer, if the borrower fails to make payments.

For this reason, it’s best to be removed from the co-signed loan as soon as possible. After a couple years of timely payments by the borrower, say on a five-year car loan, the bank may allow you to be removed from the note. You can also have the borrower agree to refinance their car loan, as soon as their timely payments rebuild/build their credit score.

Step 1 – Pay your bills on time, or better, ahead of time. This may sound simple, but if you follow this one step you will vastly improve your credit score. Although it may not seem like a big deal to you to pay your credit card a few days late each month, it can be devastating to your credit score.

Step 2 – Keep your credit balances low. If you’re maxed out on your credit cards, you’re not doing your credit score any favors. To the banks, this looks like you are living above your means and must use credit to make ends meet. Pay down the balances on your existing credit cards and boost your credit score. If you have one card that is maxed out, transfer some of the balance to other cards to even out the load.

Step 3 – Look at your credit report. You can’t know where you need to improve, if you don’t know where you are. Pull your credit report and look at your score. If your credit score is 760 or above, you can rest assured that you’ll receive the best financing rates out there. If it’s lower than 760, you have some work to do.

Step 4 – Repair credit report errors. If there are any errors on your account, make sure to contact the credit reporting agency and have them corrected. Common errors that can negatively affect your score are: misreported late payments, accounts that are not yours, loans showing as unpaid that have been paid, and old debts that are past the expiration time (7 years for most negative items, 10 years for bankruptcies).

Step 5 – Don’t close old accounts. One factor that is used to determine your credit score is the length of your credit history. Keep old credit cards open, but simply don’t use them, to maximize your score. The available unused credit plus the longevity of the card will both be positive factors that will add to your score.

Subprime borrowers. If your credit score is less than perfect, you likely are labeled a ‘subprime borrower.’ A subprime borrower is determined differently by each financial institution, but typically if your credit score is less than 620, you’re a subprime borrower. Luckily for you, there are numerous lenders who specialize in lending money to subprime borrowers!

Subprime lenders. Subprime lenders focus on providing loans to buyers with bad credit. Their interest rates are usually higher than prime lenders, as they take on a greater risk of the lendee defaulting on the loan, with bad credit car buyers. They also may require a lower loan to value rate, meaning you must have a larger down payment, than prime lenders working with good credit buyers.

Work on improving your credit score. Get a copy of your credit report with your credit score. Immediately have any errors corrected. This can significantly increase your score. In addition, if you have high balances on your credit cards, pay them down as quickly as possible. This too will improve your score. Lastly, pay all of your bills on time from this point forward. In a matter of six months, a history of on-time payments can really boost your credit score.

Make extra payments to lower the interest you pay. If you need that car loan now, and improving your credit score by fixing errors on your report and paying down your balances simply won’t be enough, there are ways to work with a high interest rate loan, to minimize the penalties associated with a bad credit score. First, be sure to pay more than your monthly payment each month on your high interest rate loan. This extra amount will go directly to the principle and means you will no longer be paying interest on that portion of the note. This simple step can save you thousands of dollars in
interest and have your car loan paid off sooner than the original term.

Remember it’s only temporary. Your credit score is an ever-changing thing. If you have to accept a bad credit car loan with an interest rate higher than you’d like, remember it’s only temporary. Continue to pay your bills on time and lower your credit card balances. With each passing month, your credit score will improve. When it’s improved enough, refinance the balance of your loan with a prime lender, at a lower interest rate.

Bad things sometimes happen to good people. With the economic challenges Chicago residents have faced in recent years, these bad things have sometimes resulted in late payments, repossessions and even foreclosures. The end result? An abundance of  bad car credit needs in Chicago. However, even if your credit score has suffered in the past, this doesn’t mean the car of your dreams is out of reach. The following will help you understand what factors lead to bad car credit in Chicago, as well as what can be done to still secure an auto loan, despite your bad credit.

The determiner of whether you have good or bad car credit is your credit score, also referred to as your FICO score. Your credit score isn’t just about your ability to pay for a car loan right now, or your recent payment history on your loans and credit cards. Your bad car credit could be from activities that happened as many as seven years ago. If you had late payments or a repossession as far back as seven years, this will show on your credit report and will negatively affect your credit score. Only time (for these items to fall off your credit report) and a continued current history of paying your bills on time can help rectify this bad car credit in Chicago.

Credit scores range between 300 and 850. Most people average a credit score in the 690s. For those with stellar credit in the high 700s, lenders are eager to work with these borrowers, as they indicate a low credit risk. However, most people don’t fall into the category. A score of 620 is often considered the cut-off between “good” and “bad” credit. Below a 620 and you won’t qualify for the special teaser interest rates that car manufacturers offer. However, there are still options for those who fall into the bad car credit category in Chicago!

A large down payment often gives a lender the incentive to take the additional risk of a bad car credit loan. Chicago car buyers who have shown the lender they too have a financial stake in the vehicle often can counteract a bad credit score. If the vehicle is worth significantly more than the amount being financed, due to a large down payment, this helps mitigate the risk due to the poor credit score.

Additionally, a lender may be willing to take the additional financial risk of a loan for bad car credit in Chicago, for a higher interest rate than what they would charge low-risk buyers. This higher interest rate can be as much as three times higher than current “good credit” rates, which makes shopping around for a loan even more important for bad car credit Chicago car buyers, than those with excellent credit.

As a last resort, bad car credit Chicago car buyers may want to check out “buy here/pay here” car lots. These dealerships specialize in working with buyers with bad car credit. Instead of turning to a 3rd party lender to finance the loan, these dealerships handle the loan in house. One thing car buyers should be wary of, however, is the higher costs associated with buy here/pay here facilities. These dealerships often have higher prices on their vehicles, as well as very high interest rates. Like traditional lenders this increased financial incentive helps them mitigate the risks with loaning money to those with bad car credit.

Due to the economic challenges many Chicago drivers have faced over the last few years, more and more Chicagoans are having to deal with less than stellar credit ratings. If you are in this situation, and looking to improve your credit score, a car loan is an excellent way to start rebuilding your credit. There are several reasons why specifically a used car may be a good choice for bad credit.

Used cars don’t depreciate like new cars. The moment you drive a new car off the dealership’s lot, it depreciates significantly. In fact, a majority of a new car’s depreciation will occur in the first three years of its life, typically. For buyers with bad credit, this means a lender may be more willing to lend money on a vehicle they know will retain most of its value through the life of the loan.

Used cars are typically less expensive than new cars. As mentioned, since new cars experience their greatest level of depreciation over the first three years of their life, a pre-owned vehicle can be much less than a similarly equipped new version of the same car. For Chicago car buyers with bad credit, a lender is more likely to fund a smaller loan amount. A used car often offers a better value per loan dollar than a new car, again further reason a lender may be more willing to undertake a bad credit loan, with the increased value of the vehicle securing the loan offsetting the increased risk of a borrower with bad credit.

Lastly, used car dealers may have access to alternate financing for those with credit challenges. For Chicago car shoppers with bad credit, traditional automotive financing through manufacturers, credit unions and local banks, simply may not be possible. To get these ultra low rates if may require better credit than some have or a substantial downpayment which may also prove to be difficult. Used car dealers often have relationships with lenders who specialize in bad credit loans. Additionally, they may even offer on-site financing, for those buyers with bad credit. If you do chose a used car, make sure you choose a good car dealer. There are several good used car dealers in Chicago some great new car dealers who specialize in used cars and used car loans. Consider talking with them first.

To check on your credit score, visit here.

Why should you care about your credit score? Your credit score directly affects your ability to get a loan as well as the interest you will pay for the loans you do get. The higher your credit score, the lower the interest you will pay. In fact, if your current credit score is below 700, you may have a difficult time obtaining the best financing rates, which can equate to thousands of dollars in extra interest you will have to pay. Making your car payments on time improves your credit score.

When you pay your car payment late, or miss a payment completely, this will negatively impact your credit score. When you go to get another car loan, the lender will look at your payment history, and use that history to predict how you will pay off their loan. If they see a history of late or missed payments, they will likely anticipate you’ll pay their payments late or miss them with their loan as well. This perceived increased risk results in the lending institution charging a higher interest rate or not funding the loan at all. In contrast, making your car payments on time improves your credit by demonstrating your ability to responsibly pay back your loan.

Another negative factor in your credit score may be if you have no credit history or a short credit history. Making on time car payments can help build this credit history, allowing you to positively establish credit. This can be critical if you’re looking toward larger credit purchases, such as buying your first home. A car loan is typically easier to qualify for than a mortgage, for Chicago buyers with no credit history or a short credit history, especially if you have a down payment or a trade-in vehicle which gives you a financial stake in the purchase. As such making your car payments on time can be a stepping stone to your dream home.

Your credit rating

One of the most important factors in your car loan is your credit rating. Your credit rating is one of the largest factors in determining the interest rate you will pay. The higher your credit score, the lower your car loan interest rate. However, if the challenging economic times that have troubled many Joliet drivers have negatively affected your credit score – all hope is not lost! There are special bad credit car loan programs, designed to help rebuild your credit and get you behind the wheel of the car you want.

Down payment

Another significant factor in your car loan is the amount of down payment you have available. For Joliet car buyers with great credit, you may be able to finance the car of your dreams with no down payment. However, for the growing number of bad credit car loans, a down payment helps show the lender that you have a financial stake in the car loan.

The terms of the car loan

Joliet car buyers know their car loan payment is a factor of the terms in your car loan. These include: the purchase price of the vehicle, the amount of down payment and/or trade-in that will be applied to this price, the interest rate, and the length of the loan.

Decide how much you can afford

Before car shopping, take a good, hard look at your personal budget and decide what monthly payment you’ll be comfortable with, including insurance. Joliet drivers can use the Internet to determine what price point of car they should be looking at, before they even come to the dealership. For car shoppers looking for a bad credit car loan, be sure to select a reasonable payment, so you don’t get into further financial trouble later on.

Joliet Car Loan Centers

• Pick the Payment
• Drop the Payment
• Finance Recall
• Chicago Car Credit

Pick the Payment

Need a great car loan or an inexpensive used car? Is your bad credit making it difficult to obtain a Chicago car loan? Pick the Payment car loans can help you with your bad credit situation. They can even get you a good deal on a new car at a very low interest rate. Pick the Payment makes your car buying experience fast and easy. No hassle, no gimmicks; speak with a professional trained in dealing with bad car credit situations. The process really is simple and is designed for people to buy a vehicle that’s right for them. It’s your money! Click here or call 800-452-1750 to talk to a credit professional.

Drop the Payment

Drop the Payment is a website devoted to getting you the right deal on a car loan despite bad personal credit history. They’ll connect you with a local dealership that understands bad car credit and special needs that arise. You may have had a bankrupcty in the past that is standing in the way of obtaining the car of your dreams or you may be upside down in a car loan with high interest rates. No matter. The team at Drop the Payment is perfect for re-establishing your credit in just a few short clicks here or a quick call to 800-451-4132.

Car Loans on Demand

The entire Chicago car credit application process doesn’t have to be hard. It’s not rocket science. In fact, the process at Car Loans on Demand is free and easy. It takes less than one minute to fill out and complete the information. Once the credit application has been completed, a car loan representative will contact you quickly to let you know the next step in the application process. Did we mention that there is no social security number required?

Chicago Car Credit

This car credit website has been around for years now and is a solid, reliable way for people with bad credit situations to get into a car they can afford. As always, the process is simple, and hassle free. You won’t have to worry about annoying forms and hours of application processes. Just fill out the form (no social security number required) and a credit professional will contact you ASAP with information regarding purchasing a new or used vehicle. They even work with select Chicago dealerships in finding the perfect car for you. Fill out the form on their website or call 800-955-2753 for a credit analysis.

Finance Recall

Being at a higher risk to lenders means higher interest rates and makes it a headache to obtain a new or used vehicle with payments that aren’t sky-high! But what happens when you’re no longer in the high risk credit category? What happens in the case that your overall credit rating has improved? Every day, people everywhere continue to pay hundreds of thousands of dollars in unnecessary fees and interest charges. Many of these people don’t realize that they qualify for a much lower interest rate, a lower monthly payment, and a much better vehicle to drive around in! Finance Recall was created to change all of that for you. This free (for now) service can help individuals determine what rate they currently qualify for and explore options in obtaining a better vehicle. Click here to submit a free Chicago car credit application.

Well, if you haven’t been watched TV and live in the Chicago area, you’ve probably missed their famous commercials detailing how you can get into the car that you want with the payment you want. Essentially, you “pick the payment”.

Pick the Payment TV Commercial

Check out the Pick the Payment TV Commercial below if you haven’t watch it before:

So what’s the catch?

Honestly, there doesn’t appear to be a catch. According to their Car Credit Frequently Asked Questions section, all you need to put down for an auto loan using Pick the Payment, is whatever works for your budget. They have certified professionals that work with you in finding the right payment that makes sense for you.

How long does the process take?

Depending on how long it takes for you to pick your vehicle, you can fill out their easy five minute form, chat with a live credit professional, or call them directly at 800-452-1750. They are open Monday through Saturday 9am to 9pm, so you’ll always be able to get in touch with an individual trained in dealing with bad credit and auto loans. From our experience, dealing with Pick the Payment has been a simple, no hassle process.

One of the best things that Pick the Payment offers its customers is the multiple options given to people even if they are in an unfavorable situation with their credit score. They allow co-signers in most cases as well as social security & pension as income to pay for your car payment. You can also rest assured that there will NOT be an enormous interest rate applied to your car loan payments.

What are people saying about Pick the Payment?

“I could not be happier. Everything went great and [Pick the Payment] was excellent. I came in for a car to help with my situation and got treated to a brand new car. This is more than I thought I could get and I will definitely send anybody I know back to [them]. [They] treated me with fairness and respect.”
- G. Parker of Glenwood, IL
Read more Pick the Payment Reviews

Final Score

We love what Pick the Payment offers. It’s a different way to shop for vehicles and they have a wide selection of vehicles in their inventory. They’ll work with you and your financial situation and find the perfect vehicle. This isn’t a generic dealership or loan center that wants to rip you off. These are real people helping other people find the vehicle that they love.

SCORE: 4.5 / 10

See Pick the Payment for yourself and view their Chicago vehicle inventory! If you’ve got a phone handy, you can call them directly at 800-452-1750.