While making an attempt at purchasing a car with bad credit may seem like a tough task it actually can be quite easy depending on exactly how bad your snabblån credit may be. What you need to know is which lenders will be willing to lend to you. My suggestion is once you find a lender willing to lend to you, continue to use that lender for all your financial needs until you rebuild your credit.
If you find that you are unable to find a lender that will help you finance the car of your dreams then a couple of things you can do to better your situation are as follows.
Pay off some old debt. This might be tough as you may find that you don’t have the money to do so. However if you can put just a little money towards your debt and pay one thing off at a time, this will ultimately improve your credit score and will help you to get the car loan you need.
Be willing to pay a large down payment. Usually when car dealers and banks are looking to help finance a bad credit loan, they will require a down payment. The more you can put down, the better you will be. Usually though, depending on how bad your credit may be, you will have to put down anywhere from $1,000.00 to $2,000.00. If you can’t afford this at the time, the best thing you can do is save up some money until you can. Then you will find it is easier to get a new car. What most people seem to do is they save up that amount and instead of getting a newer car; they get a used car so that they don’t have a payment. This is ok if you can’t afford a car payment, but it does nothing to help your credit score, and you are more likely to get a car that will not last long and will be in the same situation in just a year or two.
Only apply through banks with a history of lending to people with bad credit. It does you no good to apply through a bank that will only lend to A+ credit scores. Don’t be afraid to ask what a lenders credit requirements are before you apply.
The biggest thing to remember is to not get discouraged with a rejection and find out what your credit score is before you apply. This will help the dealership that you are trying to buy a car through know up front if they may or may not be able to help you.
About the Author Want More Free Credit and Financing Tips? You'll get insights, interviews and helpful tips to repair and grow your credit and borrowing power all for free!. The Credit and Financing eTips has a No Spam policy. Your information will never be shared or sold.