How to get a auto car loan with bad credit is a question more people are asking these days. But you need a car to get a better job to clean up your credit. The old clunker that was all you could afford is going to fall apart and leave you stranded soon. Before you even go to the dealer to get that new car you want, you should read this and follow the steps. It may save you a lot of money and trouble.
Step 1) Get a Copy of your Credit Report
You do not need the score, but the report will clue you in on what the person at the finance company sees before they see it. You can get one online at the credit reporting agencies. They are Experian, Equifax and TransUnion. All three will give you a copy of your credit report for free. And while you are there you can go over your report and dispute any discrepancies you may find.
Step 2) Check your Affordability
You may want to try one of the many online car loan calculators before you even begin looking for the loan. These online calculators will allow you to decide how much you want to pay and for how long you want to pay it off. Then when you are looking for the loan you can say, "I need this amount for this long, can you help me?" Be realistic about the interest rate you set the calculator for. Typical interest rates will vary a little from place to place, but with bad credit you will not get a great rate. It is unfortunate that those who cannot afford to pay more always end up doing so.
Step 3) Shop for the Loan Before you Choose the Car
It is a sad fact that some car lots will take advantage of you because you have bad credit. If you already have your financing in place you will know what you can afford and avoid any ripoff the dealership may try.
Step 4) Check the Current APR
Its best to check the current APR so you know what you should be paying before you shop. Some car lots will try to trick you into paying a higher APR than you need to. Be prepared if you choose to finance with the dealer and arm yourself with knowledge.
Step 5) Don’t Indulge in Extra Loans
Do not allow the dealer to finance insurance, extended warranties or anything else into your loan. You do not need to pay a high APR for those items. You are already paying enough for the privilege of financing the car. A warranty if you need one can be bought for a lot less later.
Step 6) Prove you can Pay
Remember if you do not have $1,500 a month income you probably will not be able to get a car. You have to be able to prove you can make the payments so you will need a minimum income of about $1,500 a month.
When trying to learn how to get a car loan with bad credit, these steps are very important to keep in mind. They will give you a much better chance of getting the car you want. One more tip; search the online finance companies, you will have a better chance of procuring your loan.
