What Is A Fresh Start Car Loan?

Putting it plainly a fresh start car loan lets you purchase or refinance your vehicle while rebuilding credit. We understand everyone’s story is different. Life happens and sometimes bad things happen to good people. In some cases, borrowers come to us with outstanding debt on car payments and having gone through car repossession. However, what if the debt isn’t your fault? Unemployment, unexpected bills, family issues, personal issues, or a natural disaster can lead to outstanding car payments, leading into car repossession, a tainted credit history, and/or a low credit score. 

Regardless of who’s to blame for financial troubles, there is a way out. Fresh start car loans are your superhero, saving you from unsatisfactory credit history and a bad credit score. 

What is a Fresh Start Car Loan?

This loan was designed to get you back on the road without being forced to go to a “buy here, pay here” lot, where interest rates are high, and the car value is low. This gets you upside down before you even drive off the lot! What sets this loan apart is that it’s specifically designed for you with lower restrictions and free credit counseling. The car is a bare necessity. We need to run errands, commute to work and take children to school. This type of loan can end the rejection cycle and send you toward financial freedom and financial stability.

How Can a Fresh Start Car Loan be Used?

This loan can secure financing for a new car if the old car isn’t operating properly or the old car is totaled in an accident. Secure a new or used car, truck, van, or SUV valued up to $20,000 or 50% of your annual income. Whatever you need to get back to normal, the fresh start car loan is the reset button you will be happy to press.

What About APR?

Annual percentage rate, or APR, is a yearly lump amount to pay in addition to the monthly loan payment. This will affect the fresh start car loan as the costs add up exponentially. Therefore, pick an APR rate you can handle financially. While 0% APR is ideal, very few recipients receive 0% APR on their loan, so pencil the potential annual cost in your yearly budget. Car payment calculators related to fresh start car loans are available online and a mobile app to present an idea about what you may pay monthly.

If you happen to have used a lender before that gave you a high APR, you probably understand this scenario. Paying a high APR percentage will make it difficult to pay the loan in full, dragging your finances deeper in debt than you were before. Therefore, try to get the lowest APR percentage available that you can afford.

One of the many things that sets Focus Federal Credit Union apart from others are our low rates. We are a preferred lender for many car dealerships around the state because of our preferable rates. 

How to Secure a Fresh Start Car Loan

At Focus Federal Credit Union, you need to meet the following criteria:

  1. 6 months verifiable employment history
  2. Confirm that your job will most likely continue
  3. Provide 2 of your most recent pay stubs
  4. Set up direct deposit for your paycheck
  5. Provide 2 emergency contacts

That’s it. Five easy steps to get your fresh start car loan started. 

Should you get approved, it’s important to read the contract. Ask questions to the lender if there is anything, you’re unsure about. This is what makes Focus Federal different than other lenders, once you are part of our community we treat you like family. We will make sure you understand everything about your loan before you sign the contract. 

what is a fresh start car loan

How Does Focus Federal Issue Fresh Start Car Loans?

While we offer fresh start personal loans for people who need to rebuild their credit and rebuild their savings, our fresh start vehicle loans offer a similar reprieve. The loan will rebuild credit after financial struggles leading to bad credit history. 

It sounds easy, but there are a few more details Focus Federal representatives need for your loan. Because everyone deserves a second chance, we welcome applicants with bad credit, no credit, and good credit to fill out the application online or in-person. After receiving the application, we will review and ask for more information if necessary. Then, we discuss payment options, interest rates, APR, and contract terms to pay the loan in full if you are approved. A signed contract later and you’re ready for a fresh start.

What Focus Federal Credit Union Can Do For You

Fresh start car loans are a way we can help you meet your financial goals. We sit down with you at closing and offer credit counseling.

Through our fresh start loans we:

  • Help you avoid payday lenders
  • Avoid high rate auto loans
  • Assist you in building a better credit score
  • Increase your ability to borrow at lower rates in the future

Your life is not over because you made a few financial flubs. If you are ready to leave financial troubles behind and start over, obtain a fresh start car loan. Consider it the financial medicine to cure your financial woes. At Focus Federal, we want to steer you on the right path to financial stability. Visit our website or call us for more information on fresh start car loans. This is the way to climb out of debt. With over 60 years of experience, we encourage borrowers to take the leap toward financial stability with us. Contact us today to start the process.