Chillicious.comAll About Finance
What To Do BEFORE You Ship For A Bad Credit Auto Loan
Steps You Should Take Before You Start Shopping For An Auto Loan With Bad Credit!
If your looking for a good used car, just finding a reliable car can be a challenge in itself. Now if you are looking to finance a car with bad or no credit, on top of finding something reliable, now that sometimes can be a real challenge! Finding a good deal at a local car dealership is not so hard to do. It’s finding a dealership that will not try and pull a fast one on you and add in other aftermarket products and services that will wind up costing you a lot more money in the long run, that you should also be careful about!
If you have some sort of bad credit, it can be a nightmare when your car dealer or bank gives you an extremely high interest rate on your auto loan. It makes you feel like it is impossible to get a good deal with a low credit score. Sometimes this is true, but not in most cases.
The bottom line is that dealerships want and need your business. If you feel like you are not getting a fair deal, you have the power to walk away and continue your car shopping journey someplace else! In this article I will give you some insight on what to do to prepare yourself for bargaining and getting the best deal on a bad credit auto loan.
The most important thing to get before you shop is “Credit Score”. You need this in order to get an idea of where you stand and how bad your credit really is. Most of the times people go about the whole buying process backwards. They go to a dealership, find a nice car that they like and then the dealer comes back with an auto loan approval only to tell you that you barely qualified for this car because of your credit history and credit score. They may just be trying to charge you a higher interest rate and in turn make a few thousand dollars extra on your deal, than if you already knew what your credit history looked like. a 2 to 4% increase in your interest rate can mean as much as $2000 more in interest payments coming out of your pocket over the life of the loan! This is obviously something you want to avoid.
Your initial step should be to go and search for a service that offers all three credit reports with FICO scores. You can find literally thousands of these services online by searching for them in Google, Yahoo and MNS Now known as BING. The three credit bureaus mainly used by lenders are Equifax, Trans-Union and Experian. You can also request a copy of a free credit report from all three agencies once a year, without impacting your credit score.
Lenders determine your credit risk by looking at your credit score. Credit FICO Scores can range from as high as 900 to as low as 450 or so. Obviously, the higher the score, the better interest rate and deal you can get! What usually happens is that if you do not know your score, the car dealer can lead you to believe that your credit is much worst than it really is, and tell you that this rate is all you qualify for because your score was to low. This can wind up costing hundreds of dollars more in the long run. Car dealers always have some room to negotiate. When doing financing, they usually make a few points on the interest off the entire loan. Keep in mind that dealerships are in business to make money an if they do not cover their overhead, they will not be open for business very long. So when negotiating keep in mind that the deal has to be good for both the consumer and the dealership! It’s only fair.
Learn more about Guaranteed Bad Credit Auto Loans. Stop by Frank A. Williams Jr.’s site where you can find out all about Easy Car Loans and what they can do for you.
Comments are closed
