When you have bad credit, it can get in the way when you want to buy the things you need, and that includes a used car. However, if you do your research, you can find more info on car dealerships and financing options that can help you to get a ride when you need it most. Try the following five tips to get that car loan even when your credit is not in your favor.
Check Your Credit Yourself
Before you even get started, get your credit report. Be informed about your score and see if there are any errors. You may find that some information on your report is false and can be resolved. Clean up anything that you can before you go to the dealerships. You’ll also be prepared for an argument if you are given incorrect information about your score as the negotiating begins.
Try a Pay Here Dealership
Many dealers actually offer loan programs that allow you to make payments at the dealership on a weekly or biweekly basis. Many will actually have the payments deducted from your bank account, ensuring that payments will be received. Eventually, you can improve your credit as well.
Ask About Financing Options for Bad Credit
Be honest with the dealership when you are inquiring about a car. When the financing is aware that there will be challenges with your credit, they can be more creative in finding lenders that are willing to give you a loan.
Be Willing to Go to More than One Dealership
You will find that some dealerships are more willing to work with damaged credit than others. You may even find some businesses that make bad credit their specialty. Don’t be afraid to do some comparison shopping. You do have options.
Don’t Forget to Try the Bank
While you may think there is no chance at the bank, you could be wrong. You will generally get more favorable terms at a bank, especially if you can have a loan with a short term. The sooner you pay your loan off, the more favorable you will look in the eyes of a lender. Get yourself on the right track with a loan for a used car and begin repairing your credit. You can finally have the car you need as well. Don’t leave any stone unturned as you search for a car loan.
Photo by Rich Nacmias