Sep
03

Have Bad Credit? You Can Still Get a Car Loan

Author // NPR Car Talk
Posted in // Auto sales leads, Automotive leads, Subprime auto leads

Auto internet leads

Americans love their cars, there is no doubt about that. If you have bad credit, you may think that car ownership is something that is beyond you but it is not. There are auto finance leads out there for you.

1. Investigate your current credit score and financial situation.

The first thing you need to do is get a copy of your credit report. In the first place, there may be errors in it that will both impact your auto finance leads but also getting any loans for anything. You can have errors from your credit report removed but this does take some time. The sooner you get that ball rolling the better.

Go over your finances. You need to know what your budget is when you start looking for car finance leads. Many people who are on tighter budgets need to look more at used car leads. Knowing your budget will help you both narrow down your search in terms of what kind of car you buy but what auto finance leads you investigate. There are subprime leads available for both new and used cars but you will get more bang for your buck with a used car.

2. Start working on your credit score.

It is never too late to improve your credit score. If you are looking for auto finance leads, before you even start on that process, you should start saving your money and paying down your debt. Your credit score is basically a ratio of your available credit to outstanding debt. If you can pay that down, you can get a better auto loan.

In your savings, you should start putting some away for a down payment on a car. The more you can put down, the less you will have to borrow. Neary 36% of people pay for their cars with one payment. If your credit score is not great, the chances are not good that you are in a position to do that but you can put yourself in a better position if you put down more money. You will be required to pay at least 10% or $1,000 for the car.

3. Start looking for a loan.

Your first stop when hunting down auto finance leads should be with the bank or credit union that you use. They know you and your credit history and may be more willing to help you secure a car loan. Any financial institution that has experience working with you should be contacted first as you try to get an auto loan.

Many car dealerships offer subprime auto loans to people who have bad credit. If you were turned down by your bank or other financial institutions, head over to the car dealership anyway. They are used to dealing with people who do not have great credit. Many dealerships work with lenders who deal with subprime lenders. They want to work with you and will try to help get you the loan you need.

Just like every other person, you need to shop around for the right car and the right loan. Having bad credit does not mean you have to accept a bad deal. Do not assume that you do.

4. After you have the loan you need to be meticulous in making your payments.

One of the best things about getting a subprime loan is the chance it will give you to rehabilitate your credit rating. Make sure you make all of your payments before they are due. Some people find it useful to make additional payments. The sooner you pay off your loan, the better it will look.

If, while you are paying off the loan, you find you are going to have trouble making your payments, you need to contact the lender as soon as you know. Most lenders will work with people when they are up front and honest about this. Do not let this worsen your credit rating.

Car shopping can be a stressful and hard experience for people with all levels of credit. The stress level involved is much higher when your credit score is not what you want it to be. The good news is that it is still possible to get a car loan.

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