If You Have Bad Credit You Can Still Buy A Car

Getting bad credit car finance is not as difficult as it might seem to you. You just have to take care of a few essentials to get your car financed despite bad credit. There are many banks which give you bad credit car finance, but they usually charge a high interest. Do not apply to banks that promise bad credit car finance because their interest rates are extremely high.

First Know Where You Stand

First and foremost, check your credit score. Apply for your credit report and go through your score minutely. You can order credit report from TransUnion, Equifax and Experian.

These three credit websites help fulfill the federal criteria of giving out free credit reports every year. So, be sure to order your credit report from one of these because other credit bureaus will charge for the credit reports you order them. A range of 600-700 is manageable. But problems will arise with bad credit car finance when your scores are below 550. However, it does go down every time the lender or the car company gets it checked. Check the FICO or Beacon score in your report to know your score. As long as it is above 600, it is not that bad. Now that you know your scores, wait to raise your score points and then apply for the bad credit car finance.

Bad Credit Car Finance Application

Your acquaintance with your credit reports and your credit score will help you when you go to apply for the loan. But before you apply for your bad credit car finance, fix your bad credit. It might take you a few months, but it will be eventually helpful for you in availing your car financed without much hassle. Take this step as mandatory even if you have to wait for a few more days to enjoy the ride in your car. Also, when you get your credit report, check the entries properly to see if there are any mistakes in the entries.

Go through them so that you have an idea about the standardized rates. Read about the interest rates and loans from websites before buying the car. This way, you know whether the rates they are charging from you is the standard rate. Resolve these bad credit issues and then request for the bad credit car finance.

A Few Suggestions

Your bank balance should not give the banks and the companies the idea that you will struggle to pay them their EMIs. So, keep enough money in your account at least to make the down payment. Choose a car that you can afford, not a luxuriant car you desire but cannot afford to pay for. Remember, that you are getting bad credit car finance. You cannot be choosy. Your choice of a luxury car can land you into troubles. Always remember that you are availing bad credit car finance. So be careful.