Theoretically speaking it's becoming more common for people
to have a bad credit rating. Fact remained that the problem
is, a potential lender will see your poor bad credit car loan
history when you put in a loan application, and disqualify you
from getting the loan. On the other side of the coin the good
news is that there are other options if you have bad credit
and want to buy a car.
to be noted in this regard is that some lenders provide bad
credit car loan specifically for people with a poor credit
history. But in simple terms there's bad news too - generally
the interest rates on a bad credit auto loan are much higher
than they are for a standard auto loan. This is because of the
simple reason that the loan company is taking a big risk lending
you money, so they charge you more to compensate them for that
risk. In case if you can make a large down payment or buy a
cheaper car you will reduce your payments accordingly.
On the other hand if you need to improve or even re-establish
your credit standing, then getting a bad credit auto loan can
be a good place to start. If experts are to be believed showing
you can make your payments on time over a reasonable period
will help to reassure other credit providers that you're a reasonable
risk. It is worth mentioning in this regard that dealers and
lenders have set up bad credit auto loan programs to make it
easier for people with bad credit to get a car, as for many
people nowadays a car is a basic necessity for getting to and
from work. And in an ideal scenario they need to go to work
if they're going to have the money to pay back their loan!
In most respects, keeping aside the interest rate, a bad
credit car loan is the same as a standard auto loan. There
is no hiding the fact that the difference in interest rates,
however, can be very substantial - some dealers can charges
rates in excess of 30% on bad credit auto loans. Theoretically
speaking for someone with an average to good credit rating,
the interest rate on an auto loan can be in the range of 2%
to 5%. If experts are to be believed it's also very important
to make sure you pay your loan payment on time every month.
Otherwise, in case if you mess up a bad credit loan, you may
find it almost impossible to borrow money again for a long period
Thats why if you do manage to qualify for a bad credit auto
loan, do everything you can to make sure you take advantage
of this second chance. It is quite pivotal that you never become
complacent or lazy about your payments. Also, it is of utmost
significance that you be sensible when you're choosing a car,
and remember that you're going to be paying a very high interest
rate - so choose a cheaper car. In addition be patient, and
when you've got a better credit rating and can get a standard
auto loan, you'll be able to afford the newer and more expensive
car you really want.
In case if you have found the car of your dreams, but you know
your credit is not the
greatest in that scenario you ask yourself, How can I get an
auto bad credit car loan.
Fact of the matter is you are not alone. It is worth mentioning
in this regard that thousands of people ask the same question
everyday. In simple terms just because you have bad credit,
does not mean you cannot buy that car of your dreams. There
is no denying that when considering bad credit auto loans, you
can save yourself thousands of dollars when you know about the
options available to you.
Point to be noted in this regard is that you can get all the
resources you need to compare auto loans with competitors trying
to earn your business online. It is worthwhile remembering that
now you can shop online from the comfort of your home. There
is no hiding the fact that an auto loan online can save you
the hassle of many long hours waiting at a car dealership for
Few Ideas To Help Get A Bad Credit Auto Loan
1. First and foremost, it is of utmost importance that you find
out what your credit situation really looks like. Fact remained
that with a credit score, also known as a (FICO score) with
a 500 rating it may not be wise to get an auto loan. According
to experts it may be wise to simply save money to pay cash or
at least 33% of the cost of a new car. On the other hand with
some bad credit auto loans you may have up to 29% interest rates.
In addition you can end up paying two times the cost of a new
car after interest and fees.
2. There is no denying that you can get a better deal if you
take advantage of buying a new car at the end of the month.
It is worth pointing that sometimes the dealerships sales managers
give big incentives to car dealership salesman. In other word
this gives them a big incentive to get you an auto loan even
if you have bad credit.
3. In case if you can find a good co-signer to help with a bad
credit auto loan, this might be your ticket into that new car.
But for that to happen the co-signer has to have great credit
because they are responsible for making the loan payments if
4. Its your responsibility to make sure you have at least $1,200
per month income from your job. As a matter of fact no more
than 20% of your income can be used for a monthly auto loan
payment. Always remember that this can be combined income if
you are married.
In simple terms watching more
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