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How to Buy a Car When You Have Bad Credit

How to Buy a Car When You Have Bad Credit

Are you shopping for a vehicle? Do you have bad credit? The recession may be officially over, but most of us have not forgotten it. Those who came away with credit issues face challenges on a regular basis. Bad credit financing does not have to hurt. There are dealers out there who want your business and they are willing to prove it by offering you a convenient way to get a car loan.

 

Your Credit Report

If you are unaware of your credit standing, then acquiring a copy of your report is a good idea. You may find that things are not as bad as you believed. Consumers occasionally find mistaken information. Knowing puts you at an advantage.

 

Time on the Job

A small blemish on the credit report is easy for lenders to ignore when customers show employment stability. Having a year or longer at the same company shows that you can hold down a job. You have the tenacity to remain employed; this lets lenders know your income is likely to continue.

 

Seeking a Loan

Start with your local bank or credit union. Things may not be as bad as you believe. If your bank denies the loan, then find out why. Qualifying for a cheap loan may be as simple as paying a forgotten medical bill.

There are dealerships who hope to provide bad credit financing. Some of them charge a reasonable interest rate. Occasionally, a dealership works with an institution that they own. In this case, the dealer has a lot of influence over the loan decision.

In-house bad credit financing is when the loan is handled from application to payoff at the dealership. Many companies offer flexible terms, such as weekly or biweekly payments.

 

Keep an Open Mind

When you invest money, your highest earnings come from the higher risk investments. The same is true for lenders. As a borrower, you are an investment. Your credit situation determines the level of risk a lender assumes upon making you a loan. It is only temporary. Try to find a good deal before settling for a high interest rate. If you find it impossible, then face the situation and start building your credit back up by taking a loan from someone.

There are businesses out there that are willing to help customers who have bad credit. Find out where you stand and do your homework. Borrow from someone who reports customer credit so that you can improve your situation before the next time.