Getting a Car Loan with Bad Credit
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Getting a Car Loan with Bad Credit

Despite having a low credit rating there is still a good chance that a lender will lend you money to buy a car. A bad credit rating is something that afflicts millions of Americans. Hence it’s something one has to learn to live with. The good part is that despite bad credit there are people who will lend you money.

Ever since Henry Ford launched his car in the American market, the car is a symbol of the American people. It’s a vehicle that every one needs and is more a utility than a luxury. Thus owning a car is one of your priorities. But what can put a spoke in the wheel is if you have bad credit..

Despite having a low credit rating there is still a good chance that a lender will lend you money to buy a car.  A bad credit rating is something that afflicts millions of Americans. Hence it’s something one has to learn to live with. The good part is that despite bad credit there are people who will lend you money.

 A few rules if  followed are essential before you venture in for a bad credit car loan. These are

  • Examine the your source of income. Because buying a car is easy but the other expenditure like insurance, gas, repairs and tires could drain your purse. These are recurrent expenses and there is hardly anyone who will lend you any cash if you do not have any regular income to take care of these aspects.
  •   Follow the axiom to live within means. A car loan will involve a monthly installment and it’s important that you have sufficient cash to pay this installment. Failure to pay could lend you a further mess and further damage to your already ruptured credit.

There are some further steps for  getting a bad credit car loan sanctioned. These are 

  •  Arrange to have a phone in your name. This is important as it shows permanency of residence. A lender will also want to see that you have been at your current address for a year or longer.
  • Lenders look for stability as far as work is concerned. So don’t change jobs too often. Follow the rule that the longer you work for the same employer the better your chances of getting car loans for people with bad credit.

It’s important to understand that by giving you a bad credit car loan a lender is taking a risk. Hence he will expect you to make a down payment. The amount of down payment will depend on your credit rating and other factors like your income and the car you plan to buy. These are variable factors.

There are many organizations that can help you to get a bad credit car loan. All you have to do is surf the net and at least half a dozen will be willing to give you a loan. But one of your best bets for getting car loans for people with bad credit is to belong to a credit union and apply to them for the car loan. They usually have very easy criteria, making it easier to get a loan through them when you can't get one through a bank. But banks that you have paid your loans on time will definitely help you out.

But if yours is a borderline case, in terms of credit, then you can ask a friend whose credit is good to co-sign the loan with you.

If your credit is awfully bad then do approach a dealer of new cars. Pick out a car and work out a deal with the credit manager. Possibly he will help you get a bad credit car loan. Finally if all else fails go to a reputable second hand car dealer. They will sell you a car with only a minimal amount as advance. There is thus a good chance you can manage a decent car for your use. Thus bad credit car loans are there and you can avail of them with some common sense.

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