What You Can Do If You Have Bad Credit But Want A Car
If you have bad credit but can't wait to drive your own car, the wisest thing that you can do can be summed up in this one word: WAIT. That is, wait for your finances to clean up. But if you can't wait, here are some bad credit car financing options you might want to consider.
Simply saying that you have bad credit is really vague and won't get you anywhere. You need to know exactly just how good or bad your credit history is right now before visiting a car dealership. Know where you stand in your credit report means you will know exactly what you're entitled to in terms of interest rates.
You may not know it, but there are dealerships out there that take advantage of people with only a slightly bad credit history and charge them higher interest rates than they deserved or make them for extras they don't really need. Check your credit report and credit score online by visiting TransUnion and CreditReport.com.
If you have bad credit overall, do not expect to ever get zero financing. If you have a credit score of less than 600 or else have never applied for a car loan before, do not apply for a loan at credit facilities with strict screening processes because your application will only be rejected, thus digging you a deeper credit hole.
Instead, go to websites like http://Crazy88Auto.net. They are not lenders but they work with several lenders and they can help you find bad credit car financing options, even if you've filed for bankruptcy before. If you have a credit score of over 550 and have at least $1,500 monthly income, they can help you.
Now that you know what your bad credit car financing options are, it's time to know what you need to avoid if you have bad credit.
If you're taking out a High APR loan, do NOT buy extras like warranties and insurance because most car dealerships charge markups when you buy them along with your car. Buy then after the fact, when you can get them for cheap.
Never trade in a car with the balance of a loan. If you owe money on a car, do NOT trade it at the car dealerships. Most car dealerships do not keep their promise to pay off their car loan as promised. The problem is that since the loan is in your name, you will need to pay off the loan while dealership has your car. If you want to trade in a car that you still owe money on, have the dealership sign an agreement that they will repay the loan.
Avoid a situation where a co-signer is needed for you to qualify for a loan. It destroys friendships and families, especially if you're unable to repay the loan, because the loan would end up in co-signer's name.
If you have bad credit but can't wait to drive your own car, the wisest thing that you can do can be summed up in this one word: WAIT. That is, wait for your finances to clean up. But if you can't wait, here are some bad credit car financing options you might want to consider.
Simply saying that you have bad credit is really vague and won't get you anywhere. You need to know exactly just how good or bad your credit history is right now before visiting a car dealership. Know where you stand in your credit report means you will know exactly what you're entitled to in terms of interest rates.
You may not know it, but there are dealerships out there that take advantage of people with only a slightly bad credit history and charge them higher interest rates than they deserved or make them for extras they don't really need. Check your credit report and credit score online by visiting TransUnion and CreditReport.com.
If you have bad credit overall, do not expect to ever get zero financing. If you have a credit score of less than 600 or else have never applied for a car loan before, do not apply for a loan at credit facilities with strict screening processes because your application will only be rejected, thus digging you a deeper credit hole.
Instead, go to websites like http://Crazy88Auto.net. They are not lenders but they work with several lenders and they can help you find bad credit car financing options, even if you've filed for bankruptcy before. If you have a credit score of over 550 and have at least $1,500 monthly income, they can help you.
Now that you know what your bad credit car financing options are, it's time to know what you need to avoid if you have bad credit.
If you're taking out a High APR loan, do NOT buy extras like warranties and insurance because most car dealerships charge markups when you buy them along with your car. Buy then after the fact, when you can get them for cheap.
Never trade in a car with the balance of a loan. If you owe money on a car, do NOT trade it at the car dealerships. Most car dealerships do not keep their promise to pay off their car loan as promised. The problem is that since the loan is in your name, you will need to pay off the loan while dealership has your car. If you want to trade in a car that you still owe money on, have the dealership sign an agreement that they will repay the loan.
Avoid a situation where a co-signer is needed for you to qualify for a loan. It destroys friendships and families, especially if you're unable to repay the loan, because the loan would end up in co-signer's name.