 |
Links |
| Home |
| automobile loans |
| student loan consolidation services |
| instant cash loans |
| government loans |
| loans no credit |
| Sitemap |
Bad credit car loan
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.
Point 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 of time. 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 an approval. 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 you dont. 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. Other
Articles |
||
