Bad Credit Car Loans. How To Prepare Yourself Before Visiting The Dealership In Order To Get A Good Deal!

It can be hard enough finding a good used vehicle that will be reliable and give you at least a few years of good service. But finding that along with car financing to go along with it, if you have no credit can be a lot more challenging. There are plenty of car dealerships out there that will give you a fair deal on a new or used car. The problem is that when you do find that decent deal, make sure the dealer does not try and add in tons of extras that you do not need, that will do nothing but wind up costing you a ton of money that you really cannot afford to lay out!

Having poor or a repossession can be a somewhat discouraging when your dealer comes back to you with an extremely high interest rate on your auto loan. It sort of makes you believe that there is no way you can get a good deal on auto financing if you have poor credit.

At times this can be accurate but one thing to remember is that car dealers need to sell cars. Don’t be afraid to walk away and try your chances at another dealer if you feel you are not getting a good deal. The message I will try and get across to most readers of this article is what to do to prepare yourself to get a fair deal when shopping for an auto loan with bankruptcy.

The most important thing to get before you shop is “Credit FICO Score”. You need this in order to get an idea of where you stand and how bad your credit really is. Most of the times people go about the whole car buying process backwards. They go to a dealership, find a good automobile that they like and then the dealer comes back with an auto financing approval only to tell you that you barely qualified for this car because of your limited credit history and credit score. They may just be trying to charge you a higher interest rate and in turn make a few thousand dollars extra on your deal, than if you already knew what your credit history looked like. a 1 to 5% increase in your interest rate can mean as much as $3000 more in interest payments coming out of your wallet over the life of the loan! This is obviously something you want to avoid.

Your primary step should be to go and search for a service that offers all three credit reports with FICO scores. You can find literally tons of these services online by searching for them in Google, Yahoo and MNS Now known as BING. The three credit bureaus mainly used by lenders are Equifax, Trans-Union and Experian. You can also request a copy of a free credit report from all three agencies once a year, without impacting your credit score.

Lenders determine your credit risk by looking at your credit score. Credit FICO Scores can range from as high as 900 to as low as 450 or so. Obviously, the higher the score, the better interest rate and deal you can get! What usually happens is that if you do not know your score, the car dealer can lead you to believe that your credit is much worst than it really is, and tell you that this rate is all you qualify for because your score was to low. This can end up costing hundreds of dollars more in the long run. Car dealers always have some room to haggle. When doing financing, they usually make a few points on the interest off the entire loan. Keep in mind that car dealers are in business to make profit an if they do not cover their overhead, they will not be open for business very long. So when shopping keep in mind that the deal has to be comfortable for both the consumer and the dealership! It’s only fair.

Many people try and find auto loans after bankruptcy but seem to have a hard time. You can quickly find a bad credit auto loan by visiting eCarLoan.us the premier destination for online car credit!

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