Trying to find bad credit auto loans can make you feel like pulling your hair out, but it doesn’t have to be. If you feel like it will be impossible to locate bad credit auto loans, you can rest easy. Now days there are programs available especially for those who have bad credit.
If life has taken you back a few steps financially and you’re in the market for a new vehicle, you’ll want to continue reading for information that might be helpful to you.
To do
Start by examining your credit reports. Please review it for errors, and if you find errors, request that they be removed. If you had temporary setbacks with any of your debts, write a letter to the credit bureaus. Use this letter to explain why you are temporarily behind schedule. Ask that these letters be attached to your credit report so potential auto loan lenders can review the reasons for each setback. For example, you may have gotten sick and been unable to work or lost your job, etc.
Cleaning up your credit report and removing errors is a good place to start and can even help you boost your credit score. Now that you’ve done everything you can to raise your FICO score, let’s discuss where you should look for bad credit auto loans.
Where to go (and where not to go)
The best place to locate bad credit auto loans is an auto broker. An auto broker is similar to a real estate agent in that they work for you, on your behalf. A car broker is interested in getting you the best possible deal instead of just selling a car, today.
Many times, a car broker has a special finance department that works strictly with those who have damaged credit, bad credit, bankruptcy, or no credit. This means that they have specific lenders that offer the best possible interest rates with poor credit circumstances. They will be able to obtain the best possible financing for you, saving you money and time.
Because the sellers specialize in auto loans for those with bad credit, you can be sure they understand your situation and will treat you with the dignity you deserve. Bad credit does not mean you are a bad person or should be treated differently because of a lower FICO score.
To locate bad credit auto loans, it may be wise to avoid simply walking into the first car dealership you come across. That’s because they’re available for any and all sales of the month and will do everything they can to send you down the road in a new car.
In addition, you will have the possibility of spending hours and hours at the dealership, going from seller to seller. You may rush to sign an agreement, only to find when you get your first monthly statement that your monthly payment is higher than you thought.
Use these simple tips to locate auto loans without pulling your hair out in the process.
