Car Loans for Bad Credit

by Mack Bartlett

Car loans for bad credit are actually a lot more prevalent than you might think. After all, in the neighborhood of one in every four Americans has had some kind of problem with their credit that would put them in the class of bad credit borrowers. Your ability to buy the car you want may not necessarily be impeded by your sketchy credit past, but you should go into the loan application process  well prepared. A few tips:

1. First, and most importantly, decide beforehand how much you need to spend on your new car. Notice I said decide how much you need to spend, not how much you want to spend. Putting your wants ahead of your needs might have been a big factor in why you’re a bad credit borrower in the first place, is that fair to say?

2. Take advantage of your free annual credit report, and make sure there aren’t any unfair or inaccurate blemishes on it. Again, note that I said your free credit report – provided through the US government – as opposed to one of the free reports that costs you a monthly fee or a one time fee.

You’re already a credit-challenged applicant. You really want to go over your credit report with a fine tooth comb to make sure there’s nothing you could reasonably do to get your credit score just a little higher. Bad credit car loans exist, but you’re always better off going into the application process looking as good as you possibly can.

3. Learn about, and sign up for, your bank’s billpay program. A prospective lender will be encouraged to see that in spite of past bad behavior, you’re now in a position to make your payments on time every month without even having to remember. I personally set as many of my bills up as possible with billpay just to avoid having to keep track of them month to month. It’s extremely convenient.

If you’ll follow through with these three relatively simple steps, you’re going to find it much easier to qualify for the car loan with bad credit you need to get that new car. Now make sure you use this new loan as an opportunity to rebuild your credit and improve your standing with the credit agencies. Nearly every aspect of your financial life will be simplified by an improved credit score.

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