5 steps to getting a bad credit auto loan

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As a financial adviser it is part of my job to help people with their budgets.

 

I am writing this post to give you some expert advice, to tell you exactly how to secure automobile financing with bad creditTrue, it would probably be the best option to scrape aside a few hundred dollars and buy an old rusty truck, but not many people are willing to do that in today’s day and age, where you often get judged on the type of vehicle you drive.

 

So if you are one of those people who will just not settle for an old wreck - even with your bad credit rating, read on. Getting a new car with bad credit is just a matter of a few simple steps. Here they are.

 

Step 1 - Find out what your credit score is, know where you stand.

I will advise you to go to  Auto Credit Financials homepage and look for the link where it says free credit report , and yes you truly get a free credit report without paying a dime

Usually most new car dealers and used car dealers will be willing to work with you if you have a credit score of around 650+. Do you? Well then move on to Step number 5, if not don’t worry   just continue reading and find out how you can get an auto credit loan with your bad credit rating.

 

Step 2 – Co-signers

Do you have a mom or dad with a solid credit history? Friend or close family member?  If so ask them to co-sign your auto credit loan application. If you bring a co-signer into a car dealership with a solid credit history you will easily get your auto credit loan approved and drive away in no time. Too proud to ask huh? No worries move on to step 3.

 

Step 3 – Find a Good – Bad credit dealer.

Find an auto credit lender that specializes in giving people with bad credit scores a new ride, but also make sure the auto credit lender understands and accepts your unique financial situation. 

Here is an example:

If you had a recent foreclosure, debt that is still collectible or had a repossession in recent times find an auto credit dealer that advertises they are willing to work with customers who has debt problems.

 

My advice, Auto Credit Financial is one such dealership, visit their homepage and find out how they can help you with automobile financing. Auto Credit Financial will tell you all you need to know about your average monthly down payments and bad credit interest rates, which is surprisingly not too high.  

 

Step 4 –Budget and pay on time 

OK so Auto Credit Financial is sympathetic with your situation and willing to grant you an auto credit loan. Now the ball is in your court. I often find people making the mistake of buying a car which they can’t afford. Often people are over focused on payments and think “I can easily afford a $500 a month premium” forgetting about the bigger picture. Remember you still have numerous other expenses apart from your monthly auto credit loan repayment.

 

My advice to you is - find a nice, reliable car that is not too expensive, that will get you around for a couple of years and never finance anything over 36 months!

You now have the chance to get that new ride, so don’t go overboard and remember to make your monthly repayments on time as you also now have a chance to get rid of your bad credit rating.

 

Step 5 –Improve your bad credit score

When I help clients with their budgets, who have bad credit ratings, I tell them “make sure this bad credit loan is your last!”

Start chipping away on that bad credit rating - As mentioned above make sure to pay your monthly premiums on time and even try to pay the auto credit loan of before the due date. This will give a tremendous boost to your credit rating.

 

CONCLUSION

 

As you would have noticed after reading this post, getting a bad credit auto loan is not impossible. Thanks to Auto Credit Financial who are always willing to help. Yet as a finance guru, I would have to advise you to try and get your credit rating improved as soon as possible as this will save you a lot of money, and embarrassment in the long term. Live, life with good credit!

 

 

 

Blog posted from San Francisco, CA, USA View larger map
©Mark Hergert
Last modified on
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After years of delays, the credit industry finally agreed to give consumers access to their personal "credit scores." This is important, because lenders use credit scores to determine who to give credit to and at what rates. Knowing your credit score can be empowering,If it's low you can take steps to improve your credit worthiness and if it's high you may be able to use it as leverage when shopping for your next car loan.