hey everyone it's Ben Hardy here and in
today's gonna be talking about how to
get a car loan if your credit is
absolute poop emoji before we get into
this video though as always if you're
gonna save time in mind the next time
perch car link to my carbine guide in
the description down below and then if
you want to see more videos just like
this then I recommend you subscribe
because I post these videos every single
day let's get into it
[Music]
first off we need to find what poop
emoji credit actually is so first off
let's start at top Tier credit and then
we'll go all the way down to poop emoji
credit so with top Tier credit this
means that you're probably 740 to 760
and above this is where most Lang
institutions will draw a line where they
say that you're not going to get any
better rates if your credit score is
higher so all the people bragging about
their 800 credit scores well they're in
the same interest rate area as people
that have you know at 760 credit score
typically with most Lang institutions
now if you're between 700 to 740 60
against somewhere in that range usually
you'll get a rate that's pretty close to
the top tier rate but it's usually just
a little bit under and this is still
considered really good credit it's just
not considered perfect credit like the
top tier now if you're under 700 but
you're above 650 this means you're
probably the average consumer because
this is where most people's credits will
live where their just barely below
what's considered you know good credit
with lending institutions now with this
group of individuals this typically
means that you're you know pretty good
at paying stuff off but you maybe have
you know quite a bit of debt especially
in conjunction to your income so your
debt to income ratios a little bit off
or you know maybe you accidentally
missed a payment once and so it dings
your credit enough to kind of throw you
in this category so again people in this
group are usually pretty good at paying
stuff off but you know not absolutely
perfect hence why they're not in the
good credit or perfect credit categories
now if you're in the 600 to 650 range
this is where you're getting a little
bit Reckless when it comes to paying
stuff off so people in this category
usually almost always have pretty bad
debt to income and they're pretty good
at missing payments but they're also
good enough at making payments that
their credit hasn't completely tanked to
a lower score and this is where you're
going going to start to be defined as
you know bad credit but you're not quite
poop emoji Credit Now if you are below
600 anything below 600
pretty much puts you into the rating
where you are poop emoji credit you
probably have really bad debt to income
you've got several loans that you
haven't paid on in quite some time and
you maybe have like a repo on your
credit as well and you know credit
scores can go pretty low I one time
pulled someone's credit and they've
literally had a score in the 300s I was
absolutely shocked well actually when I
went over their credit report I wasn't
so shocked by the end but like it was
crazy to see a score that low and so
this video is going to be dedicated to
again helping out people that are in
that poop emoji category and you know
just above the poop emoji category and
in the you know not good credit but
almost good credit category now before I
start the section I do need to say this
is not Financial advice it's just for
entertainment purposes only but let's
say that you're in that poo Emoji credit
category so you're under 600 with your
credit score what you need to understand
is getting an auto loan is going to be
extreme really difficult and getting a
good auto loan is going to be extremely
difficult because well most letting
institutions don't want to work with you
because if your credit's in that range
that means that not only are you not
good at paying things off there's a high
chance that they're going to have to
repossess the car and they don't want to
do that because that typically costs
lending institutions a pretty massive
amount of money and that's why lending
institutions will typically charge
dealerships of fee to basically give you
a loan and so not only are you paying
more in interest you actually will pay
more for the car itself because there's
always some sort of fee associated with
these bad credit loans and so the best
thing that you could do for yourself is
to actually not purchase a car and focus
on rebuilding your credit because if you
increase your credit score and that'll
help you get a better loan I.E pay less
interest and then also pay less for the
vehicle because you won't have any sort
of fees associated with taking out that
loan and I saw this time and time again
with people in this credit category
where they didn't really need a car they
just wanted a car they were pretty
impulsive and I understand that not
everyone that has credit score under 600
got there because of you know some sort
of impulsive buying situation you know
there are a lot of circumstances that
can tank your credit like divorce for
example and so I understand that but
most most of the time these people
didn't need a car they just wanted a car
so just have the self-control to take a
step back and go okay do I actually need
this no I need to actually go and pay
off my debts or in some cases maybe you
need to file bankruptcy because it's
just a lost cause like I would focus
more on your financial situation rather
than buying a car if I was in that
category now before we dive into the
next credit category we're gonna have a
quick intermission here where we're
going to talk about something that
applies to every single credit category
and that is down payment no matter how
bad or how good your credit is what you
need to understand is that if you put
more money down on a car then your
situation with the loan with that car R
is going to be substantially better
because of something that's known as
loan to value and what this is is how
much your loan is versus the value of a
car and this is calculated as a
percentage so let's say that you take
out a loan on a car that is equal to 100
of the value of the car then your loan
to value is 100 but let's say that you
have a car that you don't put any money
down on and it has tax title licensing
tact on it and that equals 120 so that's
your loan to value so you're taking out
a loan that's bigger than the value of
the car which means that you're not
going to get preferential rates and
getting approved in that car is going to
be a lot more difficult whereas let's
say that you put a big down payment on a
car so then you're 80 loan to value
where you're taking out a loan that's
only 80 of the value of the car well
that means that lending institutions are
going to give you a better rate on the
vehicle because not only are you putting
commitment towards the vehicle in the
form of down payment but since the loan
to values in line lending institution
see the loan is less risky so then
they're like okay you know what we'll
give you cheaper money and so this is
something that's very important to
remember no matter where your credit's
at more money down is always going to be
better for you now that we're done with
that quick intermission let's say that
you're in that 600 to 650 range when it
comes to credits your credits you know
not poop emoji but it's still bad now
the benefit of being within this range
is typically the Dealer's not going to
be charged a fee to basically get you a
loan on a car from most Lang
institutions some will still charge a
fee but for the most part A lot of those
fees are gone because your credit's good
enough that lending institutions are
willing to take the risk without
charging any crazy fees however you're
still going to get a pretty high
interest rate so again improving your
credit would be the best thing for you
but what I would say is focus on cars
that are newer with them the model year
and then lower with mileage and still
lower with price because this is going
to help you get the best possible rates
on a vehicle because if it's an older
car with higher miles getting approved
for it's going to be substantially
harder even if you have really good
credit it's actually pretty hard to get
approved on older cars but then on top
that with your credit not being so good
lending institutions will be like okay
well if this car breaks down this
person's probably not going to make
their car payment they're probably going
to pay for the maintenance instead so
then we're going to have to repossess
this car right so it's it's kind of like
a slippery slope type deal so that's
what you're going to want to focus on if
you're within that category and finally
let's dive into average credit so you're
above that 650 range but you know you're
not quite into the 700s or maybe you're
like super low 700s and here's the deal
with this credit category it's actually
pretty easy to get approved for most car
loans that's not actually the thing you
have to be concerned about in this
category what you have to be concerned
about is being taken advantage of by The
Lending institution and by the
dealership and here's why this is the
category that lending institutions and
dealers make the most amount of money
off of it's not people with bad credit
you'd think that people with bad credit
are the ones that get taken advantage of
but those are the people that are
actually taking advantage of the situ or
of the system because what they're doing
is they're taking out credit and then
never paying it back right so the
lending institutions are the ones that
get hurt in that case whereas people
that have almost good credit are really
good at paying things back but maybe
they missed just one payment but then
they'll make all the other payments on
whatever that credit item is and so they
don't get preferential rates so they pay
more in interest and because they know
that their credit's not perfect
they usually just take whatever rate is
offered to them because they're more
worried about getting approved than they
are about getting a good rate and so if
you're in this range you need to shop
your rates and you need to just be
really skeptical in general right you'll
get like the great news email we got you
approved this and that but again you
need to find out if that's the rate that
you actually qualify for or if that's
some marked up rate by The Lending
institution or by the dealership because
they know they can make extra money off
of you because of the mentality of
people within this group and so again
that's what you have to worry about if
you have okay credit not that you're
going to get approved on a car loan but
rather if you're going to actually get a
good rate on the car loan that you
actually qualify for to pull everything
together and go over the overarching
themes with today's video first off
improving your credit is always going to
help out unless you're in that like 7 16
above category because at that point any
extra points you add to your credit
score is just a you know what measuring
game but if you're not in that perfect
credit category then getting there is
not only going to mean it's going to be
easier to get approved for a vehicle
you're going to get much better rates
which is important because cars are
depreciating assets and you don't want
to pay more in interest on something
that is losing value like you're just
losing money left and right and then on
top of that money down is always a good
thing because not only will it help you
get a better rate on a car and make
approval a lot easier it puts you in a
safer position because right now we're
in a market where car values are
declining by a massive amount and so if
you owe more on your car than what it's
worth well that's only going to continue
to get worse as months progress you
don't want to be in that situation so
put more money down so that if your
car's value declines by a massive amount
and if you you know maybe lose your job
or just get in a situation where you
can't make your car payment anymore
you're not upside down to where you
can't get out of that car and then
you're screwed right you don't want to
be in that situation and then again the
advice for most of you that are watching
this video because again the average
person that's watching this video is
going to have average credit because
well hence the term average
you're going to want to be really
worried about rate more than getting
approved right just take a step back
from that car purchase it's it's not the
end of the world it's not the last car
on the planet right getting approved is
is not the most important thing the most
important thing is that you pay the
least amount of Interest possible you
pay what you actually qualify for and so
you know don't be in the average
category where you're getting taken
advantage of by The Lending institutions
and by dealers because they know that
they can with the mentality of that
category get out of that mentality right
hopefully this helps you guys out if you
want to see more videos like this then I
recommend you subscribe because I'll
post videos every single day I'll post
videos that was horrible anyways see ya