According to federal law, each of these agencies must provide each American consumer with one complete copy of their credit reports every 12 months. Order your reports and then use the dispute process outlined in the report to get your personal information corrected or, more importantly, get any inaccurate information removed from your profile that do not belong to you. Any improvements you can make here can go a long way when buying a used car with bad credit. You can also find out more information about your Auto Industry Credit Score. This score is not easily accessed and you may have to pay for a copy of the report it but it will be the score that most car dealers look at.
Talk To Bad Credit Experts
Instead of getting your financing done at the dealership and taking a financial beating because of your bad credit score, you should get pre-approved by a company that deals with bad credit auto loan consumers. They provide buyers with better rates because they are set up to help people improve their credit without taking advantage of the selling price of the car. Valley Auto Loans can help you get the kind of financing you need to buy a new or used car. In some cases, you can even get vehicle financing without putting any money down, which can save you lots of cash on the spot.
Improve Your Credit Score With A Bad Credit Auto Loan
Do you need to buy a new vehicle this minute, or can it wait 30 days? You can improve your credit score by doing simple things such as paying your bills on time and paying the full minimum payment each month. You can also improve your credit by paying balances down and by using your credit accounts responsibly. After 30 days of good credit habits, you should be able to raise your credit score and get a better deal on your loan and ultimately make it easier to get an auto loan.
Before Heading Out to Shop For Your Next Car, Consider Some Used Car Buying Basics
Get A Large Down Payment.
If you are looking to buy a new or used car with bad credit, then you can ease your lender’s fears by putting up a sizable down payment on the transaction. Cash down payments will show the bank that you are committed to the deal and that you have the resources necessary to make your payments. Down payments on used vehicles do not need to be substantial to impress the lender. In most cases, a down payment between 10 to 20 percent should be what you need to get a solid loan at an interest rate that you can live with. This down payment will also put you in a position to get lower payments on the loan.
Have A Co-Signer.
It is always uncomfortable to ask a friend or family member to be a co-signer on your car loan, but it may be your only way of getting the loan you need. It is best to have a co-signer that is comfortable with your ability to pay the loan and who will not have second thoughts when it comes time to sign the paperwork. It also helps to have a cosigner who has excellent credit. You may be able to get your loan with a co-signer who has decent to good credit, but you significantly increase your chances with a co-signer with excellent credit. It is also a good idea to know the difference between a co-signer and a co-buyer.
Don’t Forget Your Trade-In When Applying for a Bad Credit Auto Loan.
You,d also like to get into something for as little money up front as possible. Before you go to the dealership to get your next used car, you may want to find out exactly how much your trade-in is worth. You could have a trade-in that will be worth more than you could have ever imagined and that could help secure the loan you need. Go online and do your best to decide the real value of your trade-in. If the dealership is not going to give you a fair deal on your old car, then sell your old car yourself and use the money as the down payment on your next used car. Always remember to negotiate your trade-in value separate from the car you are trying to buy. Dealers love to undercut your trade-in price by offering you a lot for your trade but adding extra fees to the loan to compensate, or they will give you less for your trade to get the selling price of the car higher.
Always Shop The Best Deals, for a Used Car with Bad Credit.
Never underestimate the power of a good deal on a quality used car. Stick with cars that are within your budget. Spend some time shopping around and see if you cannot get a great deal on an excellent car. Dealers do not want you to leave without closing the deal because they know the next dealer you see, will do his best to give you a better deal. Shopping around will get you the best price for that car. You may want to try private people who are selling their vehicles to see if you can negotiate a great selling price with them.
Once you have the right price, if you have not gotten a pre-approved amount, then take it to a lender to see what kind of deal you can get on financing. Shop around for financing like you would for a car and again, you will get the best deal. Most auto loans will help you rebuild your credit score in a short time if you handle it responsibly. Sometimes a bank will work with your bad credit if you have a valuable deal in the works, and you have a steady income.
Remember To Focus On Negotiating The Terms Of The Loan.
When you have bad credit, you could come across a dealer who will try to take advantage of your situation. You may talk to dealers who will tell you that an incredibly high-interest rate is your only option, and they may try to distract you by focusing on the monthly payments. If you negotiate a good overall loan deal, then the monthly payments will take care of themselves. Do not let your negotiations get distracted by talking about monthly payments instead of the entire value of the loan. In fact, never mention to the dealer what monthly payments you are looking for until after you settle on a price for the car and your trade-in.
Don’t Get Talked Into Features You Do Not Need.
Car buyers with bad credit will sometimes get told that they have to add features such as extended warranties to the final deal if they want to get approved. The dealer will say that the extended warranty is mandatory for bad credit borrowers because it helps protect the value of the vehicle in case you default on the loan. The truth is that you should be able to get a car loan without having to pay for anything other than the used car. Your credit score should not force you to spend more money than you can realistically afford. Learn to recognize dealer scams and don’t agree to extra charges.