Posts Tagged ‘auto’
It can be hard enough finding a good used car 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 good deal on a new or used car. The problem is that when you do find that honest 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 lot of cash that you really cannot afford to lay out!
If you have some sort of bad credit, it can be hard when your auto dealership or lender gives you an extremely high interest rate on your car loan. It makes you feel like it is impossible to get a good deal with a bankruptcy. Sometimes this is accurate, but not every time.
One thing you can do is keep in mind that car dealerships are in business to make profit. If for any reason you feel like the dealership is not looking our for your best interest, you can walk away and tell them that you would like to think about it and shop around for a better deal. My goal for writing this article is to give people an understanding of how to be ready to get the best possible deal on a poor credit car loan, before you step foot inside the car lot.
First most important thing to remember… Know Your Credit Score BEFORE going to the auto dealership car dealership! If you have a pretty good idea of how weak your credit really is before walking in the auto dealership, you will have much more of the upper hand when trying to negotiate a deal. Usually what people do is go to a car dealers lot, find the vehicle of their dreams and then speak to a car salesman about the purchase of that particular automobile. Usually when you do this, and you find out afterwards that you don’t qualify for a good credit auto loan, the car dealer then has the opportunity to take advantage of you by possibly overcharging you on the loan, knowing that you love that automobile and you will probably take the deal anyway. This in the long run can cost you a lot of extra money that you didn’t really need to spend.
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 online 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.
Lenders use the FICO score as one of the single most important factors for determining credit strength. Credit scores usually range from 390 to 900 with anything over 699 being considered as good credit. If you walk into a car dealership saying you have limited credit and they run your report and see that you have a 680 FICO score, the dealer may consider offering you a higher interest rate simply because you thought your credit history was extremely poor, when in essence it was better than you thought. You must remember that car stores have to make a certain amount of profit on every vehicle they sell because they have a big overhead. So it is expected that they try and charge you more when they can. That is just how this kind of business works. But I am a true believer that a deal has to be good for the dealership as well as the customer. I feel that no one should be taken advantage of!
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