Are you looking to get approved for a car loan? A lot of people these days seem to have bad credit because the economy has just drug them all the way to the bottom. However, there are some tips you can use to get approved for a car loan, even when you have bad credit.
- Know Your Credit Score
A lot of times, it’s not that the car places aren’t willing to approve you for a loan. They know your credit score and you don’t. You are basically just going in assuming you have bad credit and will get a bad interest rate. Know exactly what your credit score is so that you are also a player in the game. Use free sites like CreditSesame.com and CreditKarma.com to get free access to your credit score.
- Check Out Rates
Okay, there are some auto places that will help you get approved for a loan at any cost and there are some auto places who could care less. Shop around and ask for recommendations to car places that are willing to work with you and your bad credit. Remember that bad credit does not mean you have to miss out on a loan, it just means you might be paying a higher interest rate on a loan.
- Plan It
Just because you have a bad credit score now it doesn’t mean you will always have one. Also, you do not have to go out and buy a car right this instant. Instead, work on your credit score for a few months. When you pay off a little debt and get rid of some of your commitments, you can really get your credit score higher. It’s no fun living in a world where everything is based off of your credit, but thankfully with a little planning, two can play the credit score game.
- Go For the Used
Honestly, you are more likely to get approved for a used car loan than a brand new car loan. Why is this? For one, new cars cost a lot more money and the auto loan place will be forking out more money in hopes you will pay it back. A used car helps you and the place giving you the loan because it’s much more manageable for both parties.
- Be Mature About It
If you walk onto a car lot and think without a doubt someone is just going to give you a car, you are more than wrong. If you want to get a car even when you have bad credit, you need to have a decent job and a long job history. Car lot owners look at more than just your credit score. They are also looking at your ability to pay back the loan as well.
So, what’s the bottom line here? You have the capabilities of getting a car loan, even though you have bad credit. However, there are some precautions you need to take. Make sure you know what your credit score is and be prepared to answer for it. Also, ensure you have a steady job and are willing to prove you have had it for a while. Try the used car route instead of going for the new car this time around. Be patient and let the car lot help you find a car and a car loan that will work for you!