Here are four reasons why it’s the best time to buy a car.

You Have Awesome Credit

You don’t need good credit to buy a car, especially since many banks offer no credit and fresh start auto loans. But if you’re looking for a fast, easy approval and a favorable interest rate, the higher your credit score, the better.

A credit score in the 700s or 800s pretty much guarantees your approval. You can walk into practically any bank and get an auto loan without a cosigner or down payment. If you don’t have good credit, take steps to improve your rating. Pay your bills on time, pay off debts and only apply for credit when necessary.

You Can Get a Deal on Older Inventory

Many dealerships are ready to negotiate and move inventory at the end of the calendar year to meet annual sales goals. But this isn’t the only time to shop for a car.

If you’re in the market for a new car, but you don’t want to pay new car prices, late summer and early fall are the best times to save on the current year’s model. This is when dealerships start receiving the next year’s inventory. They’re eager to sell the current year’s model to make room on the lot, which translates into attractive discounts and incentives. There may not be a huge selection of the current year’s model, but you can save hundreds or thousands if you find what you’re looking for.

You Can Afford a Loan

You might need a car, but an auto loan isn’t going to happen unless a bank can verify your employment or income source. Make sure you have your documentation together before applying for a loan. This includes your most recent paycheck stubs and two year’s tax returns if you’re self-employed. It might also be the best time to purchase if you have cash for a down payment — maybe extra money from a work bonus or tax refund. Although down payments aren’t required for many auto loans, it reduces how much you need to finance and lowers financing costs.

You Can Get a Low Rate

A low auto loan rate is just as important as getting the best price for a car. Nowadays, many banks and credit unions offer auto loan rates as low as 2% or 3%, and if you have a credit score over 800 you might qualify for 0% interest.

Interest rates can change at anytime, and there’s no guarantee how long rates will remain low. So if you’re serious about getting a car, now’s the time to act. Interest rates determine how much you pay over the life of the loan. A low rate can lower monthly payments, and it increases purchasing power helping you qualify for a more expensive automobile.

Shop Around and Compare Auto Loans

If you have a weak or damaged credit score, most banks will consider you a risky borrower. Even if you have every intention of paying on time, you’re more likely to default on the loan than someone with excellent credit. Therefore, there’s no way around a subprime interest rate.

Although you can’t escape higher rates, you can shop around and speak with different auto lenders to find the lowest rate possible given your credit condition. For example, two or three banks might quote an interest rate of 7% or 8%, but if you dig deeper, you might find a bank that’ll offer you a 6% auto loan rate. The lower your interest rate, the less you’ll pay every month.

Bring Cash to the Table

If you have a low score, the more cash you bring to the table, the better. The bank financing your auto loan might not require a down payment. However, if you’re willing to put some of your own money into the deal, you gain a little negotiating power, and you might be able to persuade the bank to reduce your auto loan rate.

Get a Cosigner for Your Auto Loan

Fresh start auto loans let you get a new set of wheels even when you don’t have the best credit score. But if you don’t like the idea of paying a high interest rate, you might snag a better rate by adding a cosigner to your loan.

Finding a cosigner for an auto loan is much easier said than done. Most people know the potential risks of cosigning, and understandably they might be uncomfortable putting their credit and name on the line.

Cosigners aren’t just silent partners — they’re co-applicants on the auto loan, so they’re just as responsible for the debt. As the primary applicant, you’re the main person repaying the bank. But if you become MIA and default, your cosigner assumes responsibility for the auto loan.

Prove Affordability

Money talks, and sometimes, proving you can afford an auto loan is all it takes to buy a car. Because auto loans are collateral-based loans, many lenders will work with low-score applicants, providing they have verifiable income and steady employment. As a bonus, getting an auto loan with bad credit can even help your credit score. Every month that you make an on-time payment, your auto lender updates your credit report with positive activity. This increases your personal credit score, helping you qualify for a more favorable rate the next time you apply for an auto loan.

It might come as a surprise, but you need credit to build credit. Bad credit is fixable, and if you learn the right ways to manage credit and debt, you can slowly add points to your credit score and go from bad credit to good credit in one or two years. Here are four ways charge cards can build your rating.

Get a credit builder card

If you have a low credit score, you won’t qualify for every type of credit card on the market. But many banks offer credit cards specifically for people in your situation. Credit builder cards typically come with a low credit line, but since these cards have minimum credit requirements, they’re an ideal choice for people with no credit or bad credit.

Also called secured credit cards, these cards require a security deposit, and some charge higher interest rates and monthly fees. Rather than get discouraged because of fees, think of credit builder cards as a steppingstone to an unsecured card. Before applying for a credit builder card, make sure the bank will report your activity to the credit bureaus every month.

Pay your statements on time

If you don’t pay bills on time, you might never repair your credit. Timely payments make up 35% of your credit score. So always pay your credit card statements on time every month, preferably days before your due date. If you’re going to be late, let your credit card company know in advance so you can make other arrangements and avoid late fees.

Pay off your balance in full every month

Keeping a low credit card balance also helps improve your rating. You have to use credit to build credit, so don’t be afraid to pull out your credit card from time to time. The key, however, is only charging what you can afford and paying off your balances every month. If you do carry a card balance from month-to-month, this balances should never exceed 30% of your credit line. The amount you makes up about 35% of your score.

Check your credit report

Credit card companies make mistakes. Therefore, never assume the information on your credit report is accurate and up-to-date. It’s important to order your credit report at least once a year and check these reports for accuracy. You can get a credit builder card and manage this account responsibly, but it won’t do you any good if the creditor doesn’t update your credit report with accurate information. Additionally, periodically checking your own credit report is one of the best ways to detect fraudulent activity before it’s too late.

Bank fees aren’t getting any cheaper, and if you’re getting tired of the “nickel and dime” game, it’s time to consider other alternatives. Whether you don’t want a bank account, or you can’t get a bank account, prepaid cards can offer what you need and more.

If you don’t have a bank account, you might be uncomfortable carrying large amounts of cash in your wallet or keeping cash in your house. In these situations, you can’t always protect your money from thieves. And if stolen, cash can’t be replaced. Prepaid cards, however, offer a simple, safer solution.

But if you don’t know much about prepaid cards, you may not fully understand all the features, or understand why these cards make sense if you don’t have a bank account.

Direct deposit paychecks

If your employer offers direct deposit, you can deposit your paychecks directly onto your prepaid card. You don’t have to go to the bank or wait days for funds to clear your account. Your money is quickly available on payday and ready to use.

Avoid credit card debt

Since prepaid cards are not credit cards, there’s no risk of debt. You spend only what you deposit onto your card.

Use your prepaid card for bills, grocery and traveling

Prepaid cards are debit cards — not credit cards — so they won’t build or repair a bad credit history. At the same time, prepaid cards are just as functional as credit cards. Some cards have a Visa or MasterCard logo, and you can use your prepaid card wherever these cards are accepted, even when traveling in other countries.

Zero liability protection

Just like a credit card or bank debit card, you’re not liable for fraudulent purchases made with your prepaid card. If your card is lost or stolen, immediately contact the company that issued your card. The company will cancel your prepaid card, issue a replacement card and reimburse fraudulent charges.

Prepaid cards make it easier to manage your money when you don’t have a bank account, but not all cards are created equal. There are activation fees, monthly fees and reload fees, which vary by issuer. You’ll need to shop around and compare different prepaid cards to find one with the lowest costs.

Big ideas require big money; and unfortunately, you may not have the bankroll to put your plans into action. But don’t think you have to shelve your summer plans. A personal loan can be the ticket to a memorable summer.

Here’s a look at four tips for getting a personal loan this summer.

Know Your Credit

It takes more than income to get a personal loan. You also need credit, and banks will pull your credit history to see whether you qualify for financing.

Late payments, high credit card balances and other negative items on your credit report can hurt your chances of getting approved. From a bank’s standpoint, you’re a risky applicant. However, some banks are more flexible than others, and these underwriters might approve a loan even though you don’t have the best credit. Just know that you’ll pay a higher interest rate, which means higher financing costs over the life of the loan. Therefore, it’s important to know your credit history before applying for a personal loan.

Go to annualcreditreport.com and order your free credit reports, or check your credit score at myfico.com. Check your credit report for errors and take steps to improve your rating, such as paying down credit card balances and paying your bills on time. If you can raise your score, it’ll be much easier to get a personal loan this summer.

Only Borrow What You Can Afford

You might apply for a personal loan expecting to get approved for a small amount, yet the bank says you qualify for much more. What do you do?

On one hand, you might imagine all the possibilities with extra cash in your bank account. But on the other hand, you don’t want to get in over your head. As hard as it might be to walk away from cash, don’t borrow more than you need.

A loan officer might dangle a bigger loan in your face or encourage you to get the maximum you can afford, but you know your expenses and situation better than anyone else. So only borrow what you can comfortably afford. A bigger loan might create payment problems down the road. And if you default on your payments, this can damage your credit score.

Know Your Options

Shop around and compare personal loan options to make sure you’re getting the best loan. Personal loan rates vary depending on the bank or credit union. You might think your personal bank is the best place to apply for a loan, but your bank may not offer the best loan selection or the best rates. Get a quote from your bank, but also check with other lenders in the area to see if you can get a more favorable rate elsewhere.

Pay Off the Loan As Soon As Possible

A personal loan puts many things within reach, but the longer you have a loan, the more interest you’ll pay. Additionally, monthly installment payments can eat at your disposable income. If you’re thinking about getting a personal loan this summer, make it a short-term loan and pay back the bank within six months to one year.

Money experts recommend everyone maintain a three to six-month cash reserve, but growing a strong emergency fund is much easier said than done. Fortunately, there’s a way to borrow what you need and avoid paying late fees.

A payday loan is a short-term alternative lending solution. And if used responsibly, these loans are a godsend when you need urgent cash, and when you don’t have a lot of options.

Features of a Payday Loan

No credit check.

Payday loans are easier to get than other loans because there are no credit checks or credit requirements. Therefore, you can have good credit, bad credit or no credit history. This might be hard to believe, especially since traditional lenders will scrutinize your credit score and credit report before approving your loan request.

Cash in 24 hours.

There is nothing quick about getting a traditional bank loan. There’s a long underwriting process and it might take days for a loan officer to contact you about your application. In all, it can take up to seven to 10 days to get your money. Getting a payday loan is a smoother, quicker process. Most payday lenders respond to applications within one hour of submission, and some applicants get their cash within one to two business day.

Convenient application.

Maybe you’re uncomfortable walking into a bank and asking for money. With a payday loan, you can apply for a loan privately and discreetly. Online applications let you apply from any location, whether you’re at home or at work. Submit your application electronically, and if you’re approved, the lender direct deposits cash into your checking account. And on your due date, the lender automatically withdraws the amount plus fees from your account. You don’t have to step foot inside a branch.

Requirements for a Payday Loan

If you’ve been turned down by banks, don’t think you’re ineligible for a loan. If you’re at least 18 years old with steady employment and an active bank account, you can get a payday loan.

These loans offer a quick, simple solution, but payday loans are more expensive than traditional loans. That’s the price we pay for quick cash with no credit check. The average payday loan fee is $25 per every $100. But just like any other type of loan, it’s all about responsible use.

You can avoid higher fees by paying off a payday loan as soon as possible, or at least by your due date. If you extend the loan or if you can’t pay on time, interest accrues until you pay off the balance. Also, only borrow what you need to avoid adding to your financial stress. Since payday loans vary by company, don’t apply for the first loan you stumble upon. Research two or three payday lenders and compare fees and repayment terms to make sure you’re getting an affordable loan.

The good news is that bad credit doesn’t have to follow you forever. Bad credit didn’t happen overnight, so don’t expect an immediate fix. It takes time and effort to undo years of damage, and if you don’t know much about credit, you probably don’t know where to start.

Why You Need to Check Your Credit Report

Improving your credit isn’t rocket science. But even if you get into a routine of paying your bills on time or you develop a plan to pay down credit card debt — which has a tremendous positive impact on scores — your credit rating might only improve a little.

Sometimes, there’s a bigger issue at hand. And if you haven’t checked your credit reports lately, there may be information on your credit file that’s dragging down your credit score. It’s suggested that every consumer pull their credit reports at least once a year. You can order directly from the bureaus, or get your free reports online from AnnualCreditReport.com. Despite the recommendation, some consumers never check their reports.

It only takes one error on your credit report to drive down your score. A creditor may list an account that’s not yours, your report might have outdated information, or it might contain negative items reported in error, such as collection accounts, late payments and judgments.

Benefits of Credit Repair Services

You can dispute errors yourself, but you might get faster results working with a credit repair service. These services don’t perform miracles, so don’t trust a company that offers guarantees or promises to remove every negative item from your credit reports — that’s not how the service works.

A trustworthy, reputable credit repair service works with you, your creditors and the credit bureaus to get “legitimate” errors off your credit file. Cleaning up your credit report and removing inaccurate information can be frustrating and challenging at best. And frankly, you may not have time to handle disputes or back and forth communication. This is where credit repair services comes in.

These professionals do the hard work for you, and they won’t stop until your reports are error-free.

Not only will credit repair services work hard on your behalf to repair your credit, some services offer free credit education. You can learn about your credit rights as a consumer, as well as tips on managing various aspects of personal finances from credit management to money management.

But although a personal loan can be convenient and useful, not everyone will qualify for financing. Banks and credit unions issue personal loans, and while they are in the business of lending money, they are extremely particular of who they approve.

Financial institutions take a gamble on each and every loan they make. For this matter, they have to be choosy – it’s the only way to lower the risk of losing money.

Here are three ways to know whether you’re a good candidate for a personal loan.

How’s your credit score?

It doesn’t matter how badly you need a personal loan, a bank or credit union will not approve your loan request if you don’t have acceptable credit. Credit score minimums for a personal loan vary by financial institution. However, most banks prefer applicants with scores 680 or higher. These individuals typically have a history of on-time payments, and they’ve demonstrated creditworthiness over the years.

To determine whether you are a good candidate for a personal loan, pull your credit report and your credit score before applying for a loan. This provides clues as to whether you’re likely to get approved. Plus, if your credit report reveals issues, you can make the necessary improvements to bolster your chances of getting approved for the loan.

Is there room in your budget for another bill?

A bank or credit union may review your credit report and determine that you’re a good candidate for a personal loan. This can be good news. But before you proceed with the loan process, seriously consider whether you can afford another monthly payment.

You may be happy to get your hands on the cash, especially if you need funds for improvements around your house, or if you’re looking to take a vacation. But this isn’t free money. You have to repay a personal loan, and if you’re not careful, you can get in over your head.

Take a look at your current budget. What is your take home pay and monthly expenditures? Do you have disposable income? Based on your answers to these two questions, you can hopefully determine whether a personal loan is the right move for your finances.

Do you have collateral?

There are two types of personal loans: an unsecured personal loan and a secured personal loan. If you have a high credit score and enough income, a bank or credit union may approve your application for an unsecured personal loan. Just know that these types of loans have a higher interest rate, which increases your monthly payment.

A secured personal loan requires collateral, however, this loan might be the better choice if you’re looking to keep monthly payments as low as possible. Of course, if you default on a secured personal loan, the bank or credit union can claim your collateral. They will sell your personal item and use the proceeds to pay off your balance.

Not all retailers offer catalog shopping. The ones who do, however, typically maintain a database of customers who purchase from the catalog. Occasionally, regular customers receive an invitation to apply for a catalog card. Getting pre-approved for a card has its benefits. But if you have enough credit cards in your wallet —or no credit history —you might ignore pre-approved offers.

There are several reasons why some shrug off the opportunity to get a catalog card —primarily because of the terms. For example, these cards can only be used with a specific retailer, which limits its use. Also, catalog cards tend to feature higher rates than most major credit cards, which is costly if you carry a balance from month-to-month.

Understandably, a catalog card isn’t right for everyone. However, if you’re a big catalog shopper, there are sound reasons to apply for these cards.

Instant Online Approval

A catalog card has one of the easiest application processes. If you apply for a major credit card, the credit card company will run a complete credit check. It might take several hours to receive a response; and if approved, it may take several additional days to receive your card in the mail.

The process is slightly different with a catalog card. The majority of retailers offer instant online approvals. You can visit the retailer’s website 24 hours a day, submit your application, and within seconds you’ll learn if you’re approved or denied for a card. After an online approval, you receive a credit card number, which lets you start shopping immediately.

Helps Rebuild or Establish Credit

A catalog card is extremely beneficial if you’re looking to establish or rebuild your credit history. It’s harder to get approved for a major credit card with no credit or bad credit. And although secured credit cards are another option for building credit, these require a minimum security deposit of $250.

There are no security deposits with a catalog card, and credit history isn’t a huge decisive factor. Therefore, it’s easier to get approved if you have a bankruptcy, repossession or other negative information on your credit file.

Cardholder Perks

Catalog cards frequently offer exclusive perks for cardholders. Depending on the retailer, there may be an option to defer billing for 60 or 90 days. Additionally, you may receive free shipping if you use your catalog card when placing an order; or you might receive offers to take $20 off your purchase. Unfortunately, perks and discounts are not available if you use a bank debit card or a major credit card.

Obviously, you can’t walk into any bank and get a car loan. But there are plenty of financial institutions that work with people who have poor credit scores. These banks understand that situations beyond your control happen. You may lose a job, get a divorce or deal with other issues that complicate your finances. And when you don’t have enough income, you’re likely to get behind on bills and damage your credit score.

Everyone deserves a second chance. The good news is that you can find a car loan with a low score.

Start With Your Home Bank or Credit Union

If you have a checking or savings account, and you’ve always maintained a good relationship with the financial institution, your bank or credit union might willingly give you a car loan despite your low credit score.

There are no guarantees. But at the same time, many banks and credit unions offer fresh start programs to help people rebuild their credit history. These banks might offer secured credit cards to those looking to establish credit or repair their credit, as well as personal or auto loans to help account holders get back on their feet.

Compare Interest Rates

The truth is, even if you qualify for a car loan with a low credit score, you’re not likely to get the best interest rate. This is not the best news, especially if you’re looking to keep monthly payments affordable. But although you might receive a higher rate than someone with good credit, this doesn’t mean that you’ll get hit with an exorbitant rate.

Because you have fewer financing options, some banks might take advantage of you and charge more than necessary. Therefore, shop around and request no-obligation loan quotes from several banks.

These banks will look at your complete credit history and ask for income information. Based on these factors, they’ll determine your interest rate and terms. With three or four quotes from different banks or credit unions, you can compare options and select the cheapest car loan.

Save Up a Down Payment

Banks don’t always require a down payment when purchasing a car. If you have a job and adequate income, you can often sign and drive. But if you have a low credit score, giving the bank a down payment gets your foot in the door. Not only because you’ll have a greater stake in the car, a larger down payment reduces how much you need to finance, thus greatly reduces the lender’s risk.

Cosigner

It takes savvy negotiating to persuade someone to cosign a loan. But if your parent, sibling or spouse has excellent credit and willing to help you acquire financing, adding this person to your vehicle loan can help you qualify with a low score.