9 Tips for Buying a Car With Bad Credit
With the recent economic downturn, millions of Americans have seen their creditworthiness deteriorate considerably. Unfortunately, these individuals still need to get to and from work and school, meaning they probably can’t survive without a reliable vehicle.
Luckily, there are ways to purchase a car despite the fact that your credit is less than stellar. Here are some suggestions:
- Obtain your credit report. It’s important to know just how "bad" your credit is. So go to myFICO.com to see what your credit score is and get a copy of your credit report. There may even be some errors on the report which you can have removed to improve your score.
- Try to get pre-approved for a loan. Many banks and lenders now serve subprime customers. Apply to two or three banks to see how high of a loan amount you’ll be approved for and what interest rates you will be offered. Being pre-approved for an auto loan gives you a big advantage when shopping for a new vehicle.
- . Some cars cost more to insure than others, so it’s important to know this before you begin the actual car-buying process. And it’s always smart to compare auto insurance quotes from several different companies to see if you can save some money (which can be put toward your car payment).
