Can You Avail Low Rate Car Loans With Bad Credit Score?

While thinking of auto financing, dealers are the first person which comes in our mind.  Dealers always try to get the better of the borrowers who seek car loan from them. The reason for this negative image is that there is no guarantee as you will get approved or would be offered a certain rate. On the other hand dealers are also ready to offer loan at the worst of worst condition, they even provide car loans with bankruptcy.
If a person has a bad credit rating than he may have some unpleasant experiences in dealing with the car finance companies. Like his car loan application might be rejected or he may not be able to qualify for a good loan and with bad credit guaranteed auto loans cannot be availed.

Below given are the five steps to consider the next time you go for shopping

Shop for a car in a cheap price range:
One should start his shopping and choose a car which is in a price range which makes sense. One may be tempted to buy expensive and luxurious cars but he should not make a mistake. Someday, one can get the SUV or super expensive car but he should understand that this is not the time. A smaller loan has much better chances of approval than a larger loan; one can even get online best car loan company with smaller loan.

Understand how bad credit auto finance company thinks:
Most of the companies focus on the borrower’s credit score as their main lending decision only few companies agree to do business with bad credit individuals. These companies look past the credit score and consider the situation as a whole while making a final decision.

Run a credit check
Running a credit check sounds bizarre but one would greatly benefit form this. One should find his score from all the three top bureaus and he if finds any errors than it should be immediately reported.

Take time to get a healthy list of lenders
Healthy means having 5-7 lenders. This might sound painful? But actually its not, it only takes 20-30 minutes to do your homework and find the list of lenders. One can find low rate used car loans or new loan with this method and at the end he can save thousands of money.

Apply to five or more lenders
One should assure that he applies to all lenders; he should at least apply to five as one may not know that the fifth one could be the ideal and offers 1-2% lower interest rate.