Bad Credit Car Loans. How To Prepare Yourself Before Visiting The Dealership In Order To Get A Good Deal!
It can be hard enough finding a good used car that will be reliable and give you at least a few years of good service. But finding that along with an auto loan to go along with it, if you have bad credit can be a lot more challenging. There are plenty of car dealerships out there that will give you a good deal on a new or used car. The problem is that when you do find that deal, make sure the dealer does not try and add in tons of extras that you do not need, that will do nothing but wind up costing you a ton of money that you really cannot afford to spend!
Having bad or no credit can be a very discouraging when your dealer comes back to you with an extremely high interest rate on your car 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 credit problems.
At times this can be the case 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 good 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 good deal when shopping for a bad credit 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 car they like first, then then speak to a salesman at the dealership, then the salesman breaks the new to them that their credit history is very poor and they managed to push the deal through with the bank 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 loan.
Your initial step should be to go and search for a service that offers all three credit reports with FICO scores. You can find literally thousands of these services online by searching for them in Google, Yahoo and MNS Now known as BING. The three credit bureaus mainly used by lenders are Equifax, Trans-Union and Experian. You can also request a copy of a free credit report from all three agencies once a year, without impacting your credit score.
Lenders determine your credit risk by looking at your credit score. Credit FICO Scores can range from as high as 900 to as low as 450 or so. Obviously, the higher the score, the better interest rate and deal you can get! What usually happens is that if you do not know your score, the car dealer can lead you to believe that your credit is much worst than it really is, and tell you that this rate is all you qualify for because your score was to low. This can wind up costing hundreds of dollars more in the long run. Car dealers always have some room to negotiate. When doing financing, they usually make a few points on the interest off the entire loan. Keep in mind that dealerships are in business to make money an if they do not cover their overhead, they will not be open for business very long. So when negotiating keep in mind that the deal has to be good for both the consumer and the dealership! It’s only fair.
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categories: bad credit auto loans, car loans online, no credit auto financing, bankruptcy auto loan, credit, easy car loan, credit score, credit report, poor credit, good credit, car dealership
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