Bad credit and getting a car loan
Most of us have a past and we were “young and dumb.” While I know not everyone has greatest credit, it is something you need in order to purchase a newer vehicle. While not all hope is lost and I strongly suggest you get out of debt before purchasing a newer vehicle, sometimes it just isn’t an option. Then, we have to figure out a way to get a car loan even with bad credit. It is possible, and it may take a little more legwork on your end, but it is worth the time and effort.
Pick a Vehicle
First and foremost, decide what car you would like to have and then go online and look for places that have bad credit loans. But be prepared because the interest rates are usually higher. Don’t pick a Lamborghini if you can afford a Ford, but you have to have an idea of what kind of vehicle you want. How much money can you save before purchasing a vehicle?
Save for a Vehicle
When our daughter was a teenager we had her save money out of each paycheck for her “newer” car. She saved $40 a month, and then before she purchased something, she would make her save that amount of money first, then purchase it if she had enough money. Saving for a vehicle takes dedication and desire but if you have less than perfect credit a down payment is a must. One of the biggest ways that we personally have paid off vehicles and debts faster is to pay on time. As well as paying extra if we could squeeze the money from somewhere. While $10 here and there is hard to come by sometimes, the end result is you improve your money management skills as well as improve your credit in the end.
Higher Interest Rate
While you don’t have a lot of room to negotiate your high interest rates it is something that you have to consider because if you determined you need a car, then you have to make sacrifices. Can you skip the drive through line to save that cash? What do you have at home that isn’t being used? Sell it on Facebook Marketplace and save the cash. But you must know what your credit rating is so you know what to expect when it comes time for those filling out the loan papers. We all started somewhere, and paying a higher interest rate won’t kill you, it will just make you realize how careful you have to be with your money.
Find a Creditor
Now, the next step is finding a creditor that is willing to trust you and loan you the money. Shop around and find someone that is willing to loan you the money. If it sounds to good to be true, it might be, but sometimes there is an unexpected good deal, trust your gut. Lots of car dealerships have Auto Finance calculators on their sites, so you can check to see if you qualify before getting to the dealership. Just make sure that you do not over extend yourself and pay the bill on time, or even better before it is due. Doing that will ensure that your credit score goes up, but not only that your next car purchase won’t have to be a bad credit loan. And if you have to have a co-signer, make sure and thank them and don’t wreck their good credit with your bad credit. Be sure to check out my friends at Three Rivers Chrysler Dodge and Jeep for all of your vehicle needs.