Americans have two big dreams. The first dream is having a beautiful house with a neat front garden and the other is driving a new car of their dreams. Then, if you have a bad credit history, it can get into your dream of getting behind the wheels of your coveted new Ford! It’s needless to say that people with a healthy payment history will get a vehicle loan easily. Then, all are not blessed with a flawless payment history.
Records show that at least 25 percent Americans are encumbered with a low credit score. What does this imply? Should these people be denied their right of driving a car? Of course not! You can opt for used car loans with bad credit if your budget doesn’t permit.
Having an imperfect score is not a problem anymore when it comes to used auto financing. Why? That’s because there are web based lenders who ascertain whether you have a stable income and whether you are able to clear the monthly payments during the loan term. These companies will not refuse auto loans on the pretext of your having a poor score some 6 months back. They are concerned about the present – not the past.
Your car shopping experience will be easy and hassle-free if you choose a used and low budget vehicle. Think in practical terms. When investing in a pre-owned model, you stand a fair chance of getting the sum approved. And, once your financial situation and credit rating improves, you can always trade-in for your used model and drive home a brand new and swanky Ford or Chrysler!
To be on the safe side, ensure the following:
- Ask for your credit report and have it checked. In case of any erroneous information, get it rectified immediately to prevent further damage to your report.
- When planning to invest in a vehicle, know your rating. If it is low, improve it by clearing old debts and utility bill payments.
- Maintain a clean report for a period of 6 months before applying. This will automatically improve your score and lenders will have a reason to approve your application. They will understand that you have a solid financial base to make timely monthly payments.
- Last but not the least is shopping around a bit. Research, make a list of reliable lenders, compare deals, get preapproved, and then walk into a dealer showroom. This way you have the power of negotiation.
So, what are your preparations in this regard? Please share your thoughts.