Let's talk about how to get you approved for
an auto loan even if you have bad credit or no credit at all! let's hop right in
hey party people welcome back to my channel it's me Jazzy Mac and i am so excited to be back in
front of you i'm sure all of you are like super hyped up on the free starbucks that i sent you
earlier today and if you didn't get the free starbucks it's probably because you slept in
or because you're not on my email list so you miss out on all of the goodies so of course if you want
to get on my email list all you have to do is sign up for my waitlist or you can get my templates
so let's talk about how you get approved for a car even if you have bad credit or no credit now there
are going to be three different programs that i'm going to discuss today based on where you stand
as far as your credit is concerned so the first one that we're going to get into is going to be
the first time buyer program and this is going to be geared towards those that have no credit at all
no credit means that you literally don't have a credit score it means that you've never purchased
anything on credit this is totally different from bad credit so when we say no credit it means that
when you go to pull your credit profile no score comes up this is usually the case for someone
that has never had credit such as someone that's fresh out of high school or fresh out of college
or just somebody that chose to never use credit like perhaps a dave ramsey step child or something
so with a first time home buyers program this is going to be offered generally by
a nationwide um car dealership um it's kind of like a chain dealership so if
you've ever heard of like ford lincoln mercury um you know um like stivers for
stuff like that um those companies that are like national um those are going to be the bigger car
car lots that would offer you something like a first-time buyer's program so generally to
qualify as a first-time buyer you're going to obviously have never purchased a car before
but when it comes to income they want to make sure that you have at least two to three thousand
dollars in monthly income and they would expect you to put down a down payment of sometimes two
to three thousand dollars some programs have it to where you don't have to put anything down
and what's also good about these programs is they're generally for newer cars so they're not
going to offer that program for some type of car that's like a total lemon it's going to usually
be a fairly new car maybe a year old maybe two years old and usually there's going to be
a very low interest rate a lot of them offer college students discounts where you can get a
zero percent interest rate for a certain number of years so that's really something great to utilize
if it's your first time buying a car you just want to establish some credit and you know that you're
going to make your payments on time so that is an option for you now i do want to caution you
when you go to these different dealerships make sure that you're not going to some buy here
pay here dealership those dealerships are just infamous for charging an astronomical interest
rate when i first got my car i had a 21 interest rate obviously because i had very bad credit
however i didn't realize that if i had gone to a reputable dealership and signed up for that first
time buyer program i probably could have gotten my interest rate for two to three percent or possibly
zero percent so never ever do buy here pay here i know sometimes like we can get desperate but
that's just not it's just not good flight it's not a good financial decision so the next program
that you can definitely look into this is going to be for someone that has bad credit meaning
you have anything less than a 680. so the special finance dealership or the special finance manager
is basically going to be an alternate program that is offered to people that don't want their
approval to be based on credit so with the special finance program you're basically being rated
based on your income your employment history your residential history and maybe some other factors
and references that you might have to provide so this is also a really good alternative if you
don't want to have your credit pulled and shotgunned and we've talked about in other
videos what shotgunning is that's basically where they shop around your credit to like 30 different
lenders and usually that hurts you in the long run because nobody wants to give credit to somebody
that looks desperate like they've got 30 inquiries and now they look desperate nobody wants to give
like credit to a person like that so that's why shotgun in your application
one usually you don't sign off on that and that's a reason for you to get
that stuff removed um and i do have templates for removing inquiries
but it's also something that just doesn't make you look like a responsible person when you have
30 different inquiries just sitting there it makes it look like you're just shopping around for the
best deal and you're desperate and you're trying over and over and that you're not actually taking
time or doing your due diligence to responsibly build credit and maintain good credit
so in addition to that there is of course a third option that you can utilize and this
is for people that have bad credit or no credit so whatever your situation is even if you have a
little bit over 680 you may still want to utilize this option and that is going to be your local
credit unions why would i recommend a credit union over like say wells fargo well basically when you
work with the credit union they're a little bit more lenient towards their customers because
credit unions are smaller so it's more so about building a really good relationship now if you use
a chain bank you know wells fargo a chase you might be able to get a loan there but generally
those loans are going to be reserved for people that have excellent credit that also have a really
high income so sometimes it's not really worth it to apply through those bigger banks it's sometimes
way more beneficial to go through a credit union that isn't going to pull your credit a
bunch of times because obviously they're the ones giving you your credit so in addition to that um
for credit unions um you sometimes will get um coverage like through the credit union
you know as far as like uh perhaps you want it to have like an extended warranty or you know
maybe there's gap coverage that you could get a discount on for going through the credit union
you know there's little perks like that that kind of make it worth it and so um
it's something that i would recommend going that route first um i obviously recommend that
you build a relationship with the credit union you know if you can take three to six months to build
out that relationship that would make your chances of getting approved for a loan a lot lot you know
stronger um you can also ask the people at the credit union like what is their general criteria
for approving people like we know that you approve people with less than perfect credit but
do i need to show my work history or do i need to show that i have five references every credit
union is going to be different i've heard that navy federal credit union is supposed to be a
really good credit union to use my brother has used them for years um and he kind of raves about
them i've never personally used them but family members have because i come from a military family
go navy go army go air force all three branches and they all really really love navy federal
so those are some options for you and of course anytime you get ready to you know purchase a
vehicle you want to make sure that you put as much money down as possible because obviously this is
going to save you money on the back end you know as the life of the loan goes on you know you don't
want to spend thousands of dollars in interest simply because you want it to have a super tiny
down payment even if they say a down payment isn't required it's still very beneficial to
put down a down payment and now the other thing is you want to make sure that your payment history is
impeccable your payment history should not be make six good payments and then skip a few because that
is going to kill your credit score one missed payment can lower your score by a hundred points
so make sure you have perfect payment history when you go through any of these programs
so i hope you found that helpful and i just look forward to seeing you in the next video bye