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Kansas City Drivers: How a Bad Credit Car Loan Can Benefit You

If you’re looking for a car, but your credit is subpar or nonexistent, you’re not alone. It’s common to have low or no credit, especially if you’re just starting out in life. The good news is that you don’t need perfect credit to purchase a new or used vehicle. In fact, bad credit car loans can actually aid your credit. Bad credit car lots in Kansas City are some of the best places to get a loan that is going to help you rebuild your credit score because they don’t rely on your current credit standing to give you loan approval.

There is a lot more to car loans than just credit, though, so you may be wondering how else a bad credit card loan can help. Bad credit car loans benefit you by helping to build your credit score over time. Whether you have no credit or poor credit, a bad credit car loan provides you with an opportunity to get your credit score higher.

This is great for those who are buying their first vehicle and who haven’t had a chance to build good credit yet. If you’re just finished college or have been saving up to get a car of your own when you finally get your license, then a bad credit car loan may be the ideal choice for you. These loans will allow you to get a vehicle you can afford even if you don’t have the credit to back it up.

Refinancing Options

If your credit is nonexistent, a bad credit car loan can help by building your credit score. Thanks to this new, higher credit score, you can actually get a chance to refinance over time. By making payments on time, keeping your credit in check elsewhere, and meeting the car mileage limit, you can refinance to pay far less than your original set price.

In short, you may be paying way more per month at first, but after a year or so of steady payments, you’ll have the opportunity to prove your reliability. After this, your interest rate and overall price will lower, leading to a lower monthly payment. Just make sure you’re on time, and you don’t accumulate loads of debt elsewhere. You want to be in good financial standing if refinancing is your goal.

A yellow sticky note that says refinance is sitting on a desk with a pen, calculator, and red toy car.

You’ll Be Driving a Reliable Vehicle

You could always buy a cheap used car outright, sure. However, sometimes going the out-of-pocket route can have more cons than pros. Oftentimes, extremely affordable vehicles need a lot of additional work and maintenance, meaning they end up being more expensive in the long run. When you get a bad credit car loan, you’ll be able to purchase cars that you otherwise couldn’t afford, thanks to actually having a loan you are paying off in installments.

Rather than dishing out all the money at once, you have an average of 5 to 7 years to pay off your vehicle loan if you opt for a long-term loan. This provides buyers with much more variety and many more options. Instead of buying a 1999 Buick with over 100 thousand miles, you could get your hands on a newer model with a lot less mileage. While you will not be able to get an expensive luxury car with every modern amenity, it will be far more reliable, prettier, and still offer lots of modern tech options. If you want a vehicle that you can depend on, a bad credit car loan is worth a shot.

Skipping The Rejection

Most people know that when lenders run your credit, your score is negatively impacted. That is because traditionally, when you buy a car, the finance team will send your credit out to tons of lenders in rapid fire. As checks are registered, and rejections are made, your credit takes a hit. The more hard checks on your credit, the more points you will lose off your score. This causes people to fear trying for loans at all, and understandably so.

In fact, the average credit score in Kansas City is 650, which is almost classified as poor credit. If you don’t want to be part of this statistic, a bad credit car loan can help. These car loans are better because they focus on low credit individuals. Rather than getting your credit run and rejected multiple times, a bad credit car loan lender will cater to your needs and skip all the unnecessary processing. All you’ll have to do is fill out a simple application and go from there. Say goodbye to receiving multiple rejections, leading to an even lower credit score. Bad credit car loans put that disappointment in this past.

Low-Paying Jobs Count

More good news is that you don’t have to be rich to qualify for a bad credit car loan. In fact, you don’t even have to be middle-class. As long as you make at least $1,200 a month after taxes, you’re eligible for approval at most of the bad credit car lots in Kansas City.

In Kansas City, the poverty rate is 16.52%, with many low-income citizens. Without bad credit car loan options, many low-income individuals couldn’t afford to finance a new vehicle. Thanks to bad credit loans, you can own a reliable car without needing to make over $30,000 a year. If you make an average of $14,500 annually, you’re generally eligible for a bad credit car loan.

You’ll, of course, want to factor in any bills and living expenses when deciding on which monthly payment fits your budget. Don’t set your standards too low, though. You could be surprised at the vehicles you can afford with a bad credit car loan.

A blue piggy bank with a key is sitting on a blue sedan at a Bad Credit Car Lot in Kansas City.

Short-Term Loan Options

If you hate the idea of having a looming 7-year payment plan hanging over your head, you’ll be glad to know that bad credit car loans are available in shorter intervals as well. You may be especially concerned with long-term debt if you’re a college student in the Kansas City area. At Kansas University, for example, the interest rate on a long-term student loan increases to 14% if students don’t start paying it within five months of graduation.

That’s a lot of responsibility, so those who are already dealing with a long-term student loan may want to go the short-term route with their car loan. Short-term bad credit car loan options include weekly payments that average around $72 per week, depending on the lender. If you’re not planning to refinance eventually, this is a great option. Shorter car loans typically have lower interest rates yet higher payments. If you can afford to pay more and pay it quicker, then a short-term loan is a great idea. It’ll build up your credit, and it will help you pay your car off faster.

Quick Wait Time

Lower waiting time is definitely a perk of bad credit car loans. Rather than sitting in a car dealership for hours upon hours, you can actually get approved for a bad credit car loan within minutes. This can be done in person or even online through online application forms.

If you need a car right here, right now, this loan is a good option. If something happens that you change your mind about buying a specific car, you typically have up to 30 days to reconsider your decision before the approval is dropped. This is only if you stay employed within that 30-day period, though. Overall, you’ll have time to think it over if needed, but if you’re sure, your chosen vehicle can be yours in no time.

Final Thoughts

If you’re looking for a bad credit car loan in Kansas City, remember all the ways that these loans can benefit you. It’s about a lot more than just credit building, too. Everyone needs a reliable vehicle. Whether you’re a traveler, a local commuter, a college student, or a parent, you don’t want to worry about breaking down. These loans can help you feel safer and more secure in whatever vehicle you choose.

Furthermore, bad credit car loans are great for those who are just starting out in life. You’ll get a reliable car, build your credit, and over time, you’ll get a chance to refinance for a lower interest rate. Bad credit car loans don’t have to be embarrassing. Getting one of these loans can shape your future for the better.