Buy A Car With Bad Credit - 4 Tips On Getting Approved
By: Carrie Reeder
Financing a new or used car with poor credit is feasible. However,
there are ways to boost your approval chances and possibly acquire
a reasonable interest rate. Do not enter the car buying process
blindly. Individuals with good credit have many options. On the
other hand, if your credit is bad, you must search for a good deal.
Here are four tips to help you obtain a car loan with bad credit.
What is Your FICO Score?
FICO scores range from 300 to 850. The lower the score, the higher
the interest rate received on an auto loan. Having a low credit
score does not remove the possibility of getting a new or used car
loan. However, a low credit rating will greatly affect the interest
rate on these loans.
Before applying for an auto loan, obtain an online copy of your
credit report and score. If your score is below 600, consider postponing
buying a car. Instead, devote six months to improving your score.
Maintain Steady Employment
Along with credit report rating, auto loan lenders require applicants
to have steady employment. Often times, an applicants must earn
at least $1200 a month. Steady employment usually consists of having
the same employer for 90 days. Thus, avoid changing employers every
two to three months. To prove employment, auto loan lenders may
request copies of recent paycheck stubs.
Get Pre-Approved with a Sub Prime Auto Lender
Before browsing the selection of vehicles at car dealerships, attempt
to get approved with an online sub prime lender. These lenders help
many people with bad credit obtain financing. There lending requirements
are flexible however, sub prime auto loans have higher interest
rates. If eager to buy a new car, accept the higher rate, and then
refinance at a later date.
Apply with a Co-Borrower
The easiest way to get approve for an auto loan with bad credit
is to apply with a co-borrower. If the person co-signing the loan
has excellent credit, this may justify a better rate. Of course,
there are risks to using a co-signer. If the primary borrower becomes
incapable of making regular monthly payments, the co-signer becomes
responsible for the loan.
Try using www.abcloanguide.com
for a list of Recommended
Bad Credit Auto Loan Lenders online. Their recommended lenders
are reputable and offer competitive rates.
Car Resources And Products
Lemon Law Support
- get remedy for that new car that just keeps giving your problems
Car Manuals And Car Guides
Car Parts And Accessories
- largest selection of brilliant chrome bolts and fasteners for custom motorcycles,
cars, and boats