What To Do Before You Visit A Car Dealer When In Need Of A Bad Credit Car Loan!
If your looking for a good used auto, just finding a reliable automobile 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 lot is not so hard to do. It’s finding a auto dealership that will not try and be dishonest with you and add in other aftermarket products and services that will wind up costing you a ton more cash in the long run, that you should also be careful about!
If you have some sort of bad credit, it can be hard when your car dealer or bank gives you an extremely high interest rate on your car loan. It makes you feel like it is impossible to get a good deal with a bankruptcy. Sometimes this is accurate, but not every time.
At times this can be accurate but one thing to remember is that car dealers need to sell cars. Don’t be afraid to walk away and try your chances at another dealer if you feel you are not getting a fair deal. The message I will try and get across to most readers of this article is what to do to prepare yourself to get a fair deal when shopping for bad credit auto financing.
The most important thing to get before you shop is “Credit FICO Score”. You need this in order to receive an idea of where you stand and how poor your credit really is. Most of the times people go about the whole car buying process backwards. They go to a car showroom, find a clean vehicle that they agree to purchase and then the representative comes back with an auto financing approval only to tell you that you barely qualified for this car because of your poor 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 1 to 5% increase in your interest rate can mean as much as $3000 more in interest payments coming out of your wallet over the life of the loan! This is obviously something you want to avoid.
Your initial step should be to go on the internet and find a company that offers credit reports with FICO Scores. Get a credit report with scores from all the three major credit reporting agencies such as Trans-Union, Equifax and Experian. All three credit scores will vary a little bit but you can use the highest score of the three to your advantage if you have to! Also remember that if you contact the credit bureaus directly, they offer you a free credit report once a year. This is something that everyone should take advantage of, and is very important if you want to get a good deal on your next auto loan quote online.
Lenders use the FICO score as one of the single most important factors for determining credit buying power. Credit scores usually range from 390 to 900 with anything over 699 being considered as good credit. If you walk into a car dealership saying you have poor credit and they run your report and see that you have a 680 FICO score, the dealer may consider offering you a higher interest rate simply because you thought your credit history was extremely bad, when in essence it was better than you thought. You must remember that auto dealerships have to make a certain amount of cash on every automobile they sell because they have a very large overhead. So it is expected that they try and charge you more when they can. That is just how this kind of business works. But I am a true believer that a deal has to be profitable for the dealership as well as the customer. I feel that no person should be taken advantage of!
A few years ago, finding a car loan after bankruptcy was not an easy task. Thanks to the internet, now you can get an instant car loan after bankruptcy in less than a few minutes. GuaranteedCarLoan.com is known as a leader in this type of auto loan!