Buying A Used Car? Bad Credit Needs Not To Be A Problem!

Owning a car is not a luxury: it’s a necessity, because driving everywhere that you need to be is commonplace in the modern world we are living in. Having a car is, however, a very costly necessity! Not many are able to afford the cost of a new vehicle – and when you have a bad credit, buying a car, even a used one, may seem completely out of reach!

If your credit is less than perfect, you are certainly not completely without options! But, it can be a hassle to get car financing with bad credit: most traditional lenders and banks will not be willing to lend you money. Having a damaged credit means that you will have to shop around – possibly a lot!

The down payment you are expected to make got you down? Well, before applying for a loan, you need to be clear on how much can you afford to pay monthly. Applying for a loan that you can’t really afford will only damage your credit further.

But first, get a free copy of your credit report from TransUnion, Equifax and Experian. Verify that there has not been a mistake that incorrectly lowered your credit score. If you can, try to improve it before you apply for a car loan.

If your score is above six hundred, most used car dealerships will not have problems working with you. The same goes if you are able to get a cosigner with excellent credit.

If that is not an option for you, it is best to find a used car dealership which specializes in bad credit financing. However, do not apply to more than a single car dealership at a time, because multiple credit inquiries can further lower your score.

If you have an account at credit union, you can also try there: they are often more lenient in regard to their members than other banks. You can try an online search for sub-prime lenders and see what they offer as well. If your credit score is borderline, you can still be considered not too high of a risk for some lenders.

Don’t forget how easy it is to get your car repossessed if you can’t afford to pay your monthly car payment. Before taking a car loan, beside the actual amount of money you will need to pay every month, don’t neglect to factor in your car insurance and maintenance cost as well!

Auto Novice

Auto Novices is a blog, that was set up in November 2011, which tries to help inform new & old automobile owners about various subjects from keeping their car in good working order right through to tips on buying a new & used motorbikes. GUEST POSTS: If you would like to produce a guest post for this blog then please contact us via the link in the navigation menu at the top of the page.