Thinking of buying a new car in Dallas TX and have bad credit? Here are a few tips to help you increase the chances of obtaining an auto loan. You may want to order a copy of your credit report from the three credit bureaus before applying.
The three major bureaus are Trans Union, Equifax and Experian. All three bureaus operate independently and don’t share information meaning your file may be different with one bureau. Some reports will also provide a score which may offer more insight as to how lenders will perceive your file. Review your file thorougly for any discrepancies or inaccurate information. Dispute any items that are inaccurate. The bureaus have by law 30 days to complete the investigation and have to send you a corrected file.
Potential negative items include late payments, collections, charge-offs, bankruptcies, an excessive number of inquiries and tax liens. Not having sufficient credit or having zero credit may also be perceived as negative by some creditors. You may want to explore rebuilding your credit prior to applying for any major loans. Having a solid history for 12-24 months without any late payments may boost your score.
When applying for the loan keep an eye out for the APR. A lower moonthly payment over a longer period of time is not necessarily the best if it means higher interest rates.
Contact us today for bad credit auto loans in Dallas TX.