Shopping For Car Financing With Credit Problems.
Steps You Should Take Before You Start Shopping For A Used Car Loan!
If your looking for a good used auto, just finding a reliable automobile can be a problem in itself. Now if you are looking to finance a vehicle with poor or no credit, on top of finding something reliable, now that sometimes can be a real challenge! Finding a good deal at a local car dealership is not so hard to do. It’s finding a car lot that will not try and be dishonest with you and add in other aftermarket products and services that will wind up costing you a ton more cash in the long run, that you should also be careful about!
Having credit problems or no credit can be a extremely discouraging when your dealer comes back to you with an extremely high interest rate on your auto loan. It sort of makes you believe that there is no way you can get a good deal on an auto loan if you have poor credit.
At times this can be true but one thing to remember is that car dealers need to sell cars. Don’t be afraid to walk away and try your chances at another dealer if you feel you are not getting a decent deal. The message I will try and get across to most readers of this article is what to do to prepare yourself to get a fair deal when shopping for a used car loan.
One thing that you should do ALWAYS before you step foot inside a car dealership is, get your credit score. If you know exactly what your score is before entering the dealership you will have better negotiating power when the time comes. The majority of people go find the automobile they like first, then then speak to a representative at the dealership, then the representative breaks the news to them that their credit history is very problematic and they managed to push the deal through with the finance company but it has a high interest rate. In this case you have set yourself up to get overcharged on your loan and interest rate, which will wind up costing you literally thousands of dollars more over the life of the auto financing.
Your initial step should be to go on the internet and find a company that offers credit reports with FICO Scores. Get a credit report with scores from all the three major credit reporting agencies such as Trans-Union, Equifax and Experian. All three credit scores will vary slightly but you can use the highest score of the three to your advantage if you have to! Also remember that if you contact the credit bureaus directly, they offer you a free credit report once a year. This is something that everyone is eligible for, and is very important if you want to get a good deal on your next car loan after bankruptcy.
Lenders use the FICO score as one of the single most important factors for determining credit strength. Credit scores usually range from 390 to 900 with anything over 699 being considered as good credit. If you walk into a car dealership saying you have bad credit and they run your report and see that you have a 680 FICO score, the dealer may consider offering you a higher interest rate simply because you thought your credit history was extremely poor, when in essence it was better than you expected. You must remember that car stores have to make a certain amount of profit on every vehicle they sell because they have a big overhead. So it is expected that they try and charge you more when they can. That is just how this kind of business works. But I am a true believer that a deal has to be profitable for the dealership as well as the customer. I feel that no car shopper should be taken advantage of!
Bad credit auto loans are a common thing these days. In this economy these types of loans are searched for by people every day. You can search for bad credit auto loan financing on Google, and find destinations like KarLoans.com that have helped people like you for over a decade!
categories: consumer,loan,lending,leasing,personal finance,debt consolidation,bankruptcy,students,military,armed forces,mortgage,refinance,family,vehicles