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Bad Credit Car Loan
If you’ve got bad credit, you’ve probably been told that there’s no way you could possibly secure a car loan and that the only way you could get a car would be to save up the money and pay for it all at once. While this might have been true in the past, it simply is not the case anymore. At one time, those who had bad credit couldn’t think of getting mortgages or loans. Now, even people with the worst possible credit who have gone through bankruptcies can get loans. The path to getting such a loan isn’t easy, but it can be done.
Bad Credit Car Loans from Dealerships
Most likely, you’ve seen the advertisements from local dealerships stating no credit, no problem! We grant financing to anyone! While some dealerships might be sincere when stating this, most exaggerate the claim. That’s because it actually isn’t as easy as they make it seem.
In a lot of cases, the dealership will require a down payment in order to even get financing. This down payment could be anywhere between $100 and $1000. Other dealerships won’t require the down payment and will, instead, give you a loan with a very high interest rate. With or without the down payment, you’ll still be looking at $200-$400 a month in payments.
Dealerships may make it seem like they are in it to help you. The fact is, however, that most dealerships really don’t have your best interest at heart. They’re mainly in the business to make money. They’ll take a risk and loan to a person with bad credit, but only if there’s a good chance they’ll make a lot of money in the process. Dealerships realize that there is money to be made by charging outrageously high interest rates. That’s why they even bother to loan to very risky peopleit can be extremely profitable for them. And it comes at your expense.
Luckily for you, you have another option besides a dealership loan: you can go online and get a good car loan.
Bad Credit Car Loans Online
Before the internet, people with bad credit would have had to settle for high interest rates. That has, of course, changed. The online market is so competitive that lenders are forced to offer low interest rates to potential customers. Even those with bad credit can and do get loans with very fair interest rates.
When you get a loan directly from the dealership, you are often stuck with a very limited repayment plan. That’s not the case with online loans. You have the ability to negotiate with online lenders for a rate and repayment plan that is ideal for your situation. You also have the ability to request loans from many different lenders and aren’t limited to just one or two offers. That’s the beauty of the internet and online bad credit car loans: you can get what you need in a fair and quick way.
Since the internet is obviously prone to many scams, it is important for you to choose a loaner carefully. Generally speaking, you don’t want to go with a lender that you’ve never heard of before or one that insists on any kind of up-front payment. Also, stay away from lenders based overseas as these tend to almost always be a fake.
One you find lenders you can trust you should get as many legitimate quotes as possible so that you can get the best possible loan. Good luck!
How to go about Getting Bad Credit Car Loans?
So you are thinking of buying a car but your credit score is not so good so as to stand up to it. This cannot stop you from buying a car as there is the availability of bad credit car loans in these challenging times. These types of loans, as the name suggests, are designed for people who are eager to purchase a car but have a poor credit history standing in the way. The loans are available as secured or unsecured. Such a loan scheme will allow you to pay off and own a car in 5 years. It will also offer a chance to repair your credit and out from under that bad score..
With really bad credit it is not always feasible to pledge collateral for a loan. It is here that specialty lender bad credit car loan works the best. They are given without pledging collateral. The various factors of a loan like repayment term, monthly installments, loan amount, and interest rates are set to be concurrent with the situation. A person with week credit can also get a cosigner and get better rates that way and faster approval.
So how does one apply for and get a bad credit car loan? You have to get in touch with a lending organization which could be a company, bank, or financial institution. There will be myriad deals for loans and you will be recommended one that will suit your situation the best. To get the best one, you have to do a little homework on your part. This will enable you to make the deal more reasonable. First and foremost make an estimate of the value of the car you want to purchase and the finances required for it. If you feel you need assistance, then approach a financial expert for advice. Next, you will have to compare the programs of various lenders and then can decide on one that will be most beneficial to your circumstances.
If you want to approach a lender through a dealer, that is fine too. But beware of their tricks. Always keep a copy of your credit score so that they are unable to lie to you about them under any situation. Also know the loan rates well so that they do not attempt to rob you by asking for higher rates. Remember that good dealers have connections with top money lenders. Push them a little so that they can avail you a good deal with reasonable rates. Get up and leave if you feel that you are being cheated. Having a bad credit score doesnt imply that you have to accept a deal under pressure.
The lowest pressure method for getting a bad credit car loan is to go for an online option. It is easier to be a good negotiator when you are not already seated a dealer or a bank. You can also apply 24×7. Find a good reputable site and they will put you application into a deep network of specialty lenders that can get you the result you are looking for.