Buying A Car With Bad Credit – Where To Find A Good Lender
The best car loan lenders for those with bad credit can be found online. Relying on dealership financing will only lead you to higher rates and fees with limited options. By getting pre-approved for your car loan, you can shop anywhere for your new car. Even better, you save money on competitive rates.
Dealing With Bad Credit When Looking For A Car Loan
Bad credit will affect your options when looking for a car loan. With a score lower than 650, expect to pay a couple of points higher than “A” rated, prime car loans. The lower your score, the higher your rates.
To offset the risk of your credit history and qualify for better rates, you can increase your down payment. A co-signer with an excellent credit score will also get you a lower rate.
But if you do decide on subprime financing, make sure you have the option to refinance with no fees. So when your credit score improves, you can lower your rates and your monthly payments.
Sifting Through Car Loan Lenders
Searching online for your car loan lender will let you skip the trap of dealership financing, which can cost you thousands. Online, you have hundreds of options.
To make your search easy, start with recommended lenders. You can also work with a broker, who will give you multiple quotes from competing lenders. Often broker sites have special financing deals and incentives that can’t be found on the individual lender’s site.
When looking at lenders, ask for a personalized quote. Based on your general information, lenders will give you the total cost of the loan as the APR. To get a real idea of who has the best deal, compare the same loan amount and terms for each lender.
Sealing The Deal
Once you have selected a lender, you can complete the loan application in minutes online. A blank check and loan contract will be sent to you in one to two business days. You then take that check with you when you go car shopping.
The check is treated like cash at a dealership, improving your negotiating position. It also gives you the freedom to buy a car from a private individual, providing you with more choices.
With poor credit, you can get the lowest rates with the most options by searching for your lender online.
Can I Fix My Bad Credit Alone?
Certainly, you can! But let me ask you this: why fix it alone when you can have help?
While I’m not saying that it’s better to fix bad credit with the help of an expert, there are some indisputable advantages when you hire a professional credit repair company to take over your credit problems. If you don’t have the time for it, naturally it’s better to turn over everything to a professional credit repair company. If you don’t think you have enough experience dealing with the finance people – haggling, negotiating, disputing and so on – then once again, maybe it’s time to call for 911. There are just so many things you have to do when you’re fixing bad credit that really, when you compare what you’d have to go through with the amount the credit repair company is going to charge you, it seems like you’re paying a small price indeed.
But if you’re determined to try it out alone first then certainly, I won’t stop you and indeed congratulate you for having the fortitude for such a task.
Task #1 – Getting A Copy Of Your Credit Report
Listen well and remember: you need a copy of your credit report. Don’t rely on secondhand information. Don’t overestimate your knowledge of your credit history by telling yourself that you know everything that’s contained in your credit report. Really, you don’t. So be a good little boy (or girl) and follow Mama’s orders. Approach any of the three major credit bureaus – TransUnion, Equifax, Experian, take your pick – and ask for a copy of your credit report. If you’re feeling particularly diligent, why not ask a copy of your credit report from all three credit bureaus?
Task #2 – Understanding The Contents of Your Credit Report
Here’s our rule: if you want to prove the naysayers wrong by showing them that indeed you can fix your bad credit all by your lonesome, you should be very thorough when reviewing the items listed in your credit report. Absolutely no exception. Start from the very beginning and read on till the very last period. Mistakes can even happen with the personal information bit. If you’re Mary Roberts from Philadelphia, then why the heck are you listed as Mary Roberts from Louisiana? There’s an estimated thirty percent chance that your credit report could contain errors so there, that should keep you going.
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Task #3 – Dispute!
Argue, beg, be persistent and never give up. Do what it has to take to make sure that those erroneous items are removed from your record on time. And be cunning. File for disputes a week before Christmas and Thanksgiving and since it’s a busy time of the year, the may just be obliged to temporarily erase those items from your records for lack of sufficient evidence.