How To Get An Auto Loan With Bad Credit?
By Dean Shainin
You found the car of your dreams, but you know your credit is not the greatest. You ask yourself, “How can I get an auto loan with bad credit?“ You are not alone. Thousands of people ask the same question everyday. Just because you have bad credit, does not mean you can not buy that car of your dreams. When considering bad credit auto loans, you can save yourself thousands of dollars when you know about the options available to you.
Just about anyone can get an auto loan with bad credit if they educate themselves first. With knowledge, you may be able to get an auto loan easier than you think. Most people with bad credit will settle for anything they can get when they have bad credit. Salesman at car dealerships call this a lay down or get me done in the car selling business. After waiting hours for a car loan to be approved, most people are excited with any car loan they can get. They sometimes do not really care about the interest rate. They really just want that new car of their dreams.
5 Ideas And Tips On Getting A Bad Credit Auto Loan
1. The first step is to find out what your FICO credit score is. With a FICO score under 500, it may not be wise to try to get an auto loan. It may be wise to simply save money to pay cash or at least 33% of the cost of the new car. With some bad credit auto loans, you may have up to 29% interest. You can end up paying two times the cost of a new car after interest and fees.
2. You can get a better deal if you take advantage of buying a new car at the end of the month. Sometimes the dealerships sales managers give big incentives to car dealership salesman. Also, finance managers are happy to close the month with the highest unit sales numbers possible. This gives them a big incentive to get you an auto loan even if you have bad credit.
3. Sometimes if you can find a good co-signer to help with a bad credit auto loan, this might be your ticket into that new car. The co-signer has to have great credit because they are responsible for making the loan payments if you don’t.
4. Make sure you have at least $1,200 per month income from your job. No more than 20% of your income can be used for a monthly auto loan payment. This can be combined income if you are married.
Take a look at first time car buyer programs available online. There are some great programs on the Internet that can help you get into that car of your dreams.
With today’s Internet and online access you can do a simple search on bad credit loans. You can get many resources and tools that can help you get an auto loan. You can buy a car with bad credit. You just need to do a little research first. If you do research and use the tools available online, you can save valuable time and money when you buy that new car of your dreams.