Bad Credit Car Loans  — How to Drive Off The Lot In Your New Car

A car is a necessity for most of us. It is difficult to make a living without having a reliable

means of transportation. You can take the bus or train, but the convenience of a car allows you

to accomplish more in an efficient manner.

People with bad credit, often find it difficult to finance big name purchases such as homes,

cars, furniture, appliances, etc. Having repossessions, bankruptcies, charge-offs, liens or

judgments on your credit report identifies you as a credit risk and creditors are likely to be

reserved when, it comes to extending you credit.

These obstacles however should not prevent you from owning what you need. Yes, it is true

that you will probably have to make your purchase at a higher interest rate than someone with

a good FICO score and you will have to shop around longer to find reasonable interest rates — 

but all is doable.

If you have bad credit Auto Loans and your are trying to purchase a car, follow these

guidelines and will drive off the lot in your own car:

Get your credit report. Take advantage of the free government credit report from the three

Consumer National Credit Bureaus: Equifax, TransUnion and Experian. Once you get your

credit report, inspect it to ensure that all details are familiar and that they are no red flags. If

you find any discrepancies, you will want to immediately dispute these credit report errors.

Financing before shopping. Before you start shopping for a car, shop around for financing. It is

important to do this before you go to the car dealership. The excitement of test driving a nice

car and the sweet tongues of smooth car salesmen will have you driving off the when you

haven’t even secured financing. This is a big mistake because you should never take

possession of a car until everything is in writing.

Tricky salesmen will sometimes goad you into taking possession of the car before all contracts

and financing are finalized. Once you have taken possession of the car, they will call you and

tell you that the financing did not go through and then slap you with a higher interest rate.

You can shop for a “less-than perfect” automobile loan from large premium banks, who

offer Bad Credit Auto Loans. These banks types of banks, offer most of their services online

and have entire divisions and staff dedicated to the “credit-issues” customer base.

Dealer Financing. If you are not able to secure a bank loan, your only choice is dealer

financing. This is not a bad thing. You can still find a decent interest rate. The most important

thing to remember here is not to get blinded by the interest rate. Some tricky dealerships might

give you a low interest rate but hike up the price of the car or give you a low trade in value.