Poor Credit Auto Loan

If you want you "on the road" to better credit, there are a number of things that you can do. One of the best ways to reestablish your car credit is to go to one of the better poor credit car loan web sites and begin the application process for a bad credit car loan. But in addition to a car loan for bad credit, there are other things that you can do to raise your FICO score and repair your credit history. One of those methods is consumer credit counseling.

Consumer credit counseling, in its simplest form, is structuring a budget to meet your personal needs. This involves looking at your income and controlling how much you spend. Once you have calculated how much of your paycheck needs to go towards basic expenses (food, utilities, and rent/house payment) the balance can be set aside for the next step in the process – prioritizing the balance of your debt.  

To do this, you first must determine the line of credit with the highest interest rate. If you have any additional funds, try and make more than the minimum payment on at least this account. Pay the minimum due on all the others until this account is paid off. Once this is paid off, look for the account with the next-highest rate and do the same.

It always makes sense to have an emergency cash fund, but don't put any more money in it than necessary. Savings accounts pay notoriously low interest rates. Keeping your cash in one that pays 5% while your credit card interest is costing you 17% is a losing proposition. Better to use any extra cash to pay off high-interest debts.

Reestablishing your credit requires a two-pronged attack. Decreasing your debt while establishing a positive payment history with a poor credit car loan will help raise your credit score and put you back "on the road" to better credit.