Steps You Should Take Before You Start Shopping For A Bad Credit Car Loan!
It can be hard enough finding a good second hand automobile that will be reliable and give you at least a few years of good service. But finding that along with an auto loan to go along with it, if you have credit problems can be a lot more challenging. There are plenty of car dealerships out there that will give you a fair deal on a new or used car. The problem is that when you do find that decent deal, make sure the dealer does not try and add in tons of extras that you do not need, that will do nothing but wind up costing you a great deal of money that you really cannot afford to spend!
Having poor or a repossession can be a somewhat discouraging when your dealer comes back to you with an extremely high interest rate on your auto loan. It sort of makes you believe that there is no way you can get a good deal on auto financing if you have a low credit score.
At times this can be the case but one thing to remember is that car dealers need to sell cars. Don’t be afraid to walk away and try your chances at another dealer if you feel you are not getting a fantastic deal. The message I will try and get across to most readers of this article is what to do to prepare yourself to get a good deal when shopping for a car loan after bankruptcy.
The most important thing to get before you shop is “Credit FICO Score”. You need this in order to receive an idea of where you stand and how damaged your credit really is. Most of the times people go about the whole auto loan process backwards. They go to a car showroom, find a good automobile that they love and then the dealer comes back with an auto financing approval only to tell you that you barely qualified for this car because of your limited credit history and credit score. They may just be trying to charge you a higher interest rate and in turn make a few thousand dollars extra on your deal, than if you already knew what your credit history looked like. a 1 to 5% increase in your interest rate can mean as much as $3000 more in interest payments coming out of your wallet over the life of the loan! This is obviously something you want to avoid.
Your first step should be to go and search for a service that offers all three credit reports with FICO scores. You can find literally thousands of these services on the internet by searching for them in Google, Yahoo and MNS Now known as BING. The three credit bureaus mainly used by lenders are Equifax, Trans-Union and Experian. You can also request a copy of a free credit report from all three agencies once a year, without affecting your credit score.
The most important part of a credit report used for determining your credit worthiness is your FICO Score. This score is determined by a calculated formula used by the credit reporting agencies. Most of the time your credit score can be as low as a 400 and as high as 850 to 900 in some cases! As the score gets higher typically over 700, thats when you start to reap the rewards of getting a good deal. If you do not know your FICO score, you may be led to believe that with your credit history this is all you qualify for. This way they can charge you more interest and in the long run you can end up paying thousands of dollars more over the life of the car financing. Remember car store are in business to make a profit, and given the opportunity, that is exactly what they are going to do. Don’t get me wrong, car stores do deserve to make money or they could not stay in business and pay their bills. But consumers also deserve to get a honest!
Its never been easier to find an easy car loan on the internet. These days all you have to do is search for auto financing with bankruptcy and within seconds you will find Top websites like DrCarLoan.com.
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