•4:09 PM
Let me give people some advice on how to shop for a bad credit car loan online!
The first thing someone should do when researching car loans is to check their credit report. Double check to see if everything on the credit report is accurate and true. Chances are that there may be a few things on your credit report that were put there in error and you may have better credit than you think! If the errors on your report are not removed or corrected, then you may be put into a lower bank tier which may mean, a higher interest rate, and your loan may be placed with a "Special Finance" bank rather that a "Prime Lender" who will usually give you better terms on the auto loan.
One thing you should take notice of when checking your credit is your actual credit FICO score. For a long time seeing a credit score was considered privileged information for lenders to see only. Now with the many credit reporting services available online, the average consumer can see their credit score by simply ordering that type of credit report. Usually a lenders goes by one of the 3 credit bureaus' credit scores. Those credit bureaus are Trans Union, Equifax and Experian. It really is important to know if you have good or bad credit, this way you know what to expect when dealing with a dealer, and knowing exactly where you stand for your auto loan.
Another thing to remember when looking for a car loan is that you dont always have to get a loan through a dealerships finance department. Dealers make money off of every loan they get approved, as a result, if they do get you a bad credit car loan, it will most likely wind up costing you more money than if you shopped around for a loan by yourself. What you would try and do is secure a loan before you go to the dealerships to buy. This will save you a ton of money in the long run, if its possible.
Start shopping for the best auto loan rates and terms. They usually vary from one lender to the other. Credit unions are usually a good place to look as well. They used to primarily lend money for car loans for for people with good credit only. But now we are starting to see them giving auto loans for people with bad credit as well.
But don't get me wrong, alot of car dealerships have very competitive finance departments that deal with numerous auto loan lenders and and can usually get you a pretty good deal if you are a good negotiator. What you are paying for when going to the dealership for the auto loan is convenience. Shopping around for a good interest rate with different banks can be very time consuming. Sometimes just finding a bank that deals with bad credit can be hard enough. Usually dealerships can have a better chance at getting you approved for an auto loan because of the close relationships they maintain with the lenders. So do your research and figure out which method of obtaining a car loan is best for your situation! Good Luck!
The first thing someone should do when researching car loans is to check their credit report. Double check to see if everything on the credit report is accurate and true. Chances are that there may be a few things on your credit report that were put there in error and you may have better credit than you think! If the errors on your report are not removed or corrected, then you may be put into a lower bank tier which may mean, a higher interest rate, and your loan may be placed with a "Special Finance" bank rather that a "Prime Lender" who will usually give you better terms on the auto loan.
One thing you should take notice of when checking your credit is your actual credit FICO score. For a long time seeing a credit score was considered privileged information for lenders to see only. Now with the many credit reporting services available online, the average consumer can see their credit score by simply ordering that type of credit report. Usually a lenders goes by one of the 3 credit bureaus' credit scores. Those credit bureaus are Trans Union, Equifax and Experian. It really is important to know if you have good or bad credit, this way you know what to expect when dealing with a dealer, and knowing exactly where you stand for your auto loan.
Another thing to remember when looking for a car loan is that you dont always have to get a loan through a dealerships finance department. Dealers make money off of every loan they get approved, as a result, if they do get you a bad credit car loan, it will most likely wind up costing you more money than if you shopped around for a loan by yourself. What you would try and do is secure a loan before you go to the dealerships to buy. This will save you a ton of money in the long run, if its possible.
Start shopping for the best auto loan rates and terms. They usually vary from one lender to the other. Credit unions are usually a good place to look as well. They used to primarily lend money for car loans for for people with good credit only. But now we are starting to see them giving auto loans for people with bad credit as well.
But don't get me wrong, alot of car dealerships have very competitive finance departments that deal with numerous auto loan lenders and and can usually get you a pretty good deal if you are a good negotiator. What you are paying for when going to the dealership for the auto loan is convenience. Shopping around for a good interest rate with different banks can be very time consuming. Sometimes just finding a bank that deals with bad credit can be hard enough. Usually dealerships can have a better chance at getting you approved for an auto loan because of the close relationships they maintain with the lenders. So do your research and figure out which method of obtaining a car loan is best for your situation! Good Luck!
About the Author:
Want to find out more about Bad Credit Auto Loans, then visit Frank A. Williams Jr.'s site on how to find the best No Credit Car Loan for your needs.
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