If you are looking to get a new car, but know your credit hasn’t quite what it takes, there are still options available to you. Many people know they have ‘bad’ credit, but don’t know what ‘bad really means in terms of their scores and possibilities. Here are 7 steps that you can take to pursue a car loan, despite having damaged credit.
1. Check Your Credit
When it comes to knowing where your credit scores stand, it’s easy to assume the worst or take someone else’s word for it. But don’t stop there. Use our complimentary credit score tool to discover where your credit scores really stand so you can being your search.
2. Do Some Shopping
Some lenders will get one glance at your record and immediately turn you down. Others may be more flexible and could see your record with a more positive outlook. Dont’ give up hunting, just because you’ve gotten turned down. There are out there, like Complete Auto Loans, that are willing to meet your needs despite your subpar records.
3. Bring a Buddy
While this may seem unnecessary, it can actually work out in your favor to bring another person along. they can be another set of eyes and ears, in addition to be there to help you work through loan terms, should dubious terms appear.
4. Shop Short Term
Many people get caught up in shopping for lower monthly payments. While this may seem good, paying off small balances over long periods of time will cost you more in the long run. Instead, look to cut back on expenses and go with a slightly more expensive monthly payment that will land you with a paid-off loan in less time.
5. Avoid Nonessentials
Lots of contracts extended to lower credit buyers today are jam-packed full of nonessential services. Most of the time, these are goods you don’t need, and shouldn’t have to pay for. It’s never safe or profitable to base the loan on extended warranties, insurance, or after-market services. Better go find something else.
6. Watch for ‘Yo-Yo’ Sales
“Yo-yo” sales are sales where the buyer does not confirm final terms with the dealer before signing and driving away. Days or weeks later, the buyer discovers that their monthly payments or required down payments were increased, because the terms were contingent or conditional. These sales are far more common among buyers with bad credit that ones with good, so be sure to confirm with the dealer on final terms before signing.
7. Aim High
Even if your credit scores are too low for other things, like repossessing a house, it may be at the perfect spot for a prime auto loan. Use our complimentary credit score tool to discover what your scores are and how you can get approved for an auto loan through Complete Auto Loans.