When you are buying a car with bad credit you need to approach it with the right attitude. The first thing you will want to do is find out exactly where your credit stands. Some people think their credit is worse than it actually is. You should get a copy of your credit report and score from the credit bureau, Equifax has a very good service for monitoring your credit score. You will have to spend a few bucks to get the complete report, but it is well worth it to know in advance rather than wasting time going from dealer to dealer.
Buying a Car with Bad Credit Tips
When you know exactly what your credit score is you will have a better idea what your options are when buying a car with bad credit. There are some car dealers that specialize in bad credit car loans, but they have thinned out quite a bit since the credit crunch of October 2008. There have been many people that could finance a car with decent interest rates only a year after a bankruptcy. If you need to raise your Credit Score Go HERE NOW! and Do It Yourself.
You should know that you are not the only person that needs to buy a car with bad credit. Bad things can happen to good people and everybody needs a chance to rebuild their credit. When you walk into a car dealer to buy a car with bad credit the salesman and the car dealership wants to sell you a car. They are not there to judge you they just want to sell cars. They want to sell you a car as bad as you may want to buy a car. If you get turned down by a lender for a car loan you should remember that it is not personal, it is just a business decision. Don’t take it personally.
Do Some Research for Buying a Car with Bad Credit
You might want to consider doing some research online or getting a car loan in advance before you go to buy a car with bad credit. You could check into a local bank where you do business or a local credit union if you are a member. If you can get a car loan from a source other than the car dealer you won’t have to worry about them trying to sell you extra insurance, warranties and other things that you do not need.
Credit Score and Buying a Car with Bad Credit
When you find out what your credit score is and you realize that it is really bad your only alternative may be a “Buy Here, Pay Here” car dealer that will finance your car purchase in house. They normally charge a very high interest rate for a borrower that has bad credit, but that may be your only choice if you need to buy and finance a car. Many of the Buy Here, Pay Here car dealers will tell that you can buy and finance the car and after 6 to 8 months you can refinance the car and get a lower rate providing you have kept current with the payments. Buying a car with bad credit can cost your dearly in terms of interest rate. You should know that this very rarely happens because the car they are selling and financing usually has a lower book value than any bank or lender is willing to finance. So don’t count on refinancing the car, you will probably have to pay out the full term.
The car industry and the banking industry know that there are many people that need to buy a car with bad credit in order to keep a job. There are changes happening all the time to help good people that have bad things happen to them buy and finance cars. There are ways available, keep looking, but look out for car scams. If you need to raise your Credit Score Click Here and Do It Yourself.