Getting bad credit auto loans can be a nightmare. Having a low credit score is like having a black cloud over your head. However, you are not alone, it seems to be a very wide spread condition especially within the younger generations. College is quite expensive and most new grads enter the national work force with huge debts and horrible credit scores to match. One of the major problems is that unless you live in San Francisco or Boston or any city with a major trolley system you have to have a car. No car, no ride to work, no job. Rest easy though, there are auto loans for people with bad credit.
The first thing you should work on is knowing exactly what your credit score is. You’ve seen the nice, smiley guy on TV playing guitar advertising freecreditreport.com, well, its free so why not. There are many other online services that do this as well. However the best place to start is the source. You can get your actual credit report from one, or all of the credit reporting agencies for free as well. They are Equifax, Experian, and Trans Union. These reports may differ slightly because of their methods but you will find a very usefull list of all you past and present debts as well as your standing for each one. That is whether they are paid off, in default, or on going. Be prepared to see mistakes as well. It can be a long process involving lots of paper work to get these things cleared up but it is something you absolutely have to do. These reports, good or bad, follow you for the rest of your life so it is very important to be sure they are accurate. You may not need to get a mortgage or pay for your daughters wedding today but, those days come faster than you think. Take care of your credit reports now. Know your score and what it means.
OK, so you know your credit score and though it’s not so good you still need a car. Pay no attention to the TV commercials! What I mean is do not get attached to any type of car, especially a new one. Zero percent financing sounds great but do you really think a car dealer is going to give up it’s share of the profit. Many times zero percent financing just means that the profits will be made elsewhere, like warranties, or the downpayment, or in any one of the gazillion other details you will go through at lightning speed with the dealer. Keep an open mind and have a realistic idea of what you can afford to pay on a monthly basis. I can pretty much guarantee that on a Friday night you will not be content to sit at home to save the $50 you’d normally spend partying and be satisfied because you have a nice car. I suppose you could sit in the car and it might be a little better but thats not the point. Don’t sacrifice your life for a car.
Research dealerships. Find the one that advertises for bad credit auto loans the most. This is a the dealer that is set up the best for your kind of situation. Remember, each time a credit check is done a mark goes onto your report. This can be bad. By going to several dealerships and getting turned down OR turning down their offer you are accumulating inquiries on your credit report. Find the dealer that is most likely to approve your financing and start there and work with them.
Bad credit is an epidemic and is very anti-climatic to college graduation. Before heading out to the one dealer that carries that awesome car you saw on TV take a few precautions and save yourself a lot of trouble. Know your credit score and make the effort to search out the best auto loans for people with bad credit. Just remember to keep an open mind and get a car that suits your situation not your fantasy.