Bad Credit Car Dealer - How to Secure a Loan and Improve Your Rating

A bad credit car dealer can help you get back on your feet regardless of past mistakes. Many people find themselves under a mountain of debt, and even after filing for bankruptcy and trying to turn their finances around, may not be able to secure loans for essential big purchases such as a vehicle. If you're concerned about taking out a sizeable loan or are facing inflated interest rates due to your high risk status, here are some tips on how to find good deals and continue to keep your finances under control. Check Your Score Have you actually examined your score? Even if you've recently filed for bankruptcy, mistakes can be made that will lower it even further than it should be. Debts that may have been discharged or even paid and cleared can appear. If you have a very common name, you may have debts that belong to another person that is bringing down your score. It can be scary, but regularly looking at your score and scrutinizing it are crucial for securing loans as well as improving your finances. If you do discover any discrepancies, wait until the disputes are resolved until you apply for any financing. Payment History Before you even think about buying a vehicle, you should worry about building up a solid payment history. Just by paying your bills on time every month you are raising your score and that can shave hundreds of dollars off any loan you may receive. Concentrate on the small hurdles such as consistently paying off electricity, cable, phone, and water bills before you commit to taking out a loan. Down Payment With any expensive purchase, it's always best to save up as much as you can for a down payment. The more you can afford the better interest rates you will receive and the less you'll have to pay off. It is worth the wait and every penny counts. Having a sizeable initial payment will also show that you're a serious buyer. Even if you have extremely bad credit, car dealer companies will be much more willing to work with you if you can pony up some cash. Negotiate A bad credit car dealer is taking a risk, but that doesn't mean that you can't haggle over the details. Don't be afraid to negotiate, but always have a reason why. Use a high down payment as leverage, or bring some proof of your improved scores. A co-signer can also help you get a lower interest rate or more convenient payment plan. Rebuild If you're still concerned about getting approved and managing the payments for a loan, remember that by meeting all payments on time you will be greatly improving your score. Not only can you rebuild it faster, but you can even bring it higher than it ever was before with diligent effort. Reliable transport may also be a necessity for your job, so the investment will be worth the money that you are able to put into it.