Bad Credit? 3 Things You Need to Know about Getting a Car Loan

Having bad credit can harm your chances of getting a car loan, but there are ways in which you can do it successfully and get the car that you want and need. Knowing what steps to take and when can increase your chances and make your bad credit a little less harmful.

First of all, you need to know that your credit score is truly accurate. Just like a bank or credit card statement, it is better to inspect all of the elements before you accept the final balance. Many do not know that some aspects of your credit score can be disputed and reversed if found inaccurate. For example, the wrong date could be listed for a payment, making it listed as late. If you can prove that it was in fact not late, dispute it. The date can be changed and your credit score can go up. This could make all the difference in getting a car loan.

Secondly, if you are initially turned down for a loan, act quickly, but do not lose hope. You can apply again somewhere else, but you should do so within the month. Each failed application can lower your credit score even more, but what will help you is that if you are applying for the same loan type within the month, it only counts as one request. This will keep your score from going any lower, and you might have a better chance at that loan through another resource than from the one you used on your first try.

Lastly, it is recommended that you consider financing directly from the car dealership as a last resort. Many dealers will advertise that bad credit is no problem. For them it is not, but for you it might be. Their interest rates will be higher than ones from your bank for example, so going through those channels first is a better option. Those higher dealership rates can really add up, and if you have difficulty paying them, it could plummet your credit score further, creating slim chances of getting loans of any kind in the future.

To start the process of getting the car loan that fits you, find your credit score and examine it thoroughly. There are additional resources found here. Take your time so that you can find the best option for you to rebuild your credit profile and getting a reliable vehicle.