Bad Credit Car Loans. How To Prepare Yourself Before Visiting The Dealership In Order To Get A Good Deal!
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 there are blemishes on your credit, it can be hard to take when your dealership tries to explain to you that you do not qualify for a lower interest rate and better terms on your auto loan. It can sometimes make people feel helpless in getting a fair auto loan offer.
One thing you can do is keep in mind that car dealers are in business to sell cars. If for any reason you feel like the dealership is not looking our for your best interest, you can walk away and tell them that you would like to think about it and shop around for a better deal. My goal for writing this article is to give people an understanding of how to prepare yourself to get the best possible deal on a bad credit auto loan, before you step foot inside the car dealership.
First things first … Know Your Credit Score Before going to the car dealership! If you have a good idea of how bad your credit really is before entering the dealership, you will have a lot more of the upper hand when trying to make a deal. Usually what people do is go to a car dealers lot, find the car of their dreams and then speak to a car salesman about the purchase of that particular used car. Usually when you do this, and you find out after that that you do not qualify for a good credit auto loan, the dealer then has the opportunity to take advantage of you by possibly overcharging you on the loan, knowing that you love that car and you will probably take the deal anyway. This in the long run can cost you a ton of extra expense that you did not really need.
First, do a search online for free credit reports with credit scores. You are going to need to arm yourself with an accurate credit score from all three major credit bureaus: Experian, Equifax and Trans-Union. You are actually eligible for a free credit report every year, so take advantage of that so you can get the best deal possible on your auto loan.
The most important part of a credit report used for determining your credit worthiness is your FICO Score. This score in determined by a calculated formula used by the credit reporting agencies. Usually your credit score can be as low as a 400 and as high as 850 to 900 in some cases! As the score gets higher typically over 700, that’s when you start to reap the rewards of getting a better deal. If you do not know your FICO score, you may be led to believe that with your credit history this is all you qualify for. This way they can charge you more interest and in the long run you can wind up paying thousands of dollars more over the life of the auto loan. Remember dealerships are in business to make money, and given the opportunity, that is exactly what they are going to do. Do not get me wrong, car dealerships do deserve to make money or they could not keep their doors open and pay their bills. But consumers also deserve to get a fair deal!