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A bad credit auto loan isn't impossible to find-- it
just takes a little work! If your credit is a little
dented and dinged, it doesn't have to shut you out
of an auto loan. There are those companies that will
overlook bad credit. Auto loan options for you if
you have less than perfect credit include on-lot
dealer financing, getting a co-signer, attempting to
repair your credit before you look for a bad credit
auto loan and accepting less than ideal terms for a
bad credit auto loan.
Your best starting point - before you even start
looking for a car - is to check your credit report
yourself. A new law passed last year entitles you to
get one free credit report from each of the major
credit reporting agencies every 12 months. The law
is being rolled out across the country in stages,
but by the end of 2005, whatever state you live in,
you'll be entitled to check your own credit history
free once a year to find out if you have bad credit.
Auto loan and finance companies will use the
information in your credit history to determine
whether or not to grant you a loan and on what
terms, so it makes sense to check first and avoid
being surprised.
If you find errors in your credit report, or if a
credit reporting agency is mistakenly reporting that
you have bad credit, put off applying for an auto
loan until you have a chance to clear up the
mistake. If, on the other hand, your credit report
legitimately lists problems, you can start looking
for a bad credit auto loan through one of several
different sources.
Because a bad credit auto loan carries more risk for
the lender, it's difficult to find one with
"competitive" interest rates. The best way to get a
good interest rate - and begin repairing your bad
credit is with a cosigned auto loan. By co-signing
an auto loan for you, your co-signer takes
responsibility for paying back your loan if you fail
to make the payments. The interest rate is likely to
be much better than you can get with any other bad
credit auto loan - very close to the terms your
co-signer would be offered. Just be sure to ask the
lender to report the payment history in BOTH your
name and that of your co-signer so that you can
begin repairing or building your credit history.
If a co-signer isn't possible, or you prefer a loan
in your own name, try to secure a bad credit auto
loan on your own before going to the dealer. Your
usual bank is your logical first choice. Make an
appointment to speak with a loan officer at the bank
where you usually do business, as they have an
interest in continuing and extending their
relationship with you. One possible option through a
credit union, for instance, is to make arrangements
for a bad credit auto loan that's tied to one of
your other accounts as security.
The car dealer should be your last option for
securing a bad credit auto loan. They have a vested
interest in getting you into a car - but be aware
that you'll pay premium prices for financing a bad
credit auto loan through a dealership. If it's your
only option, however, you may find that you can
convert your high interest auto loan in the future
if you're able to repair and improve your credit
score.
About the author:
"@Copyrights 2005" - Bill A Smith works as a credit
counselor for
Ameri
credit counseling firm. Bill has 10 years of
experience in providing credit repair, credit
counseling and credit management services to
clients. Visit us at
http://www.americreditservices.com/ and
http://www.americreditservices.com/0-interest-credit-cards/
for non profit credit management services.
Recommended
Loan Resources:
Guaranteed Bad Credit Financing -
YoureApproved.org has been created to help those who
have bad credit find the credit they deserve.
Personal loans, business loans, credit cards and
mortgages are all within your reach no matter how
bad your credit situation is - even with
bankruptcy!
Credit Axis - A one-stop
resources for Bad Credit Loans, Credit Repair,
Filing Bankruptcy, Government Grants, and Government
Auctions. They are committed to helping you to get
your credit back on track, OR get loans or cash that
you need.
Access Loan & Credit Data program
- Design to help anyone - even those with bad credit
to get up to $15,000 loan within 30 days! With money
back guarantee if you cannot get your loan.
Debt Free In 3 - Thousands use this
secret to gain 100% debt freedom and
live the “good life.” You can too! In
fact, this secret practically guarantees
you will become debt free in as little
as 3-5 years no matter your income.
Best
part: You can start shrinking your debt
for FREE if you choose to!
Ultimate Debt Guide -
Reveal How You Can
Get Out Of Debt FAST Without Filing
Bankruptcy -- Using Several Little Known
But Highly Effective Techniques Which
Are Guaranteed To Work No Matter How
Much You Currently Owe!
Collection Agency Self-defense
- A former debt collector reveals his idiot-proof,
down-to-earth and easy to read system that stops
debt collectors from harassing you - even without
a lawyer or bankruptcy! Include topics on how to
negotiate with your creditors for the best repayment
plans.
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