Having your car repossessed usually makes for a very bad experience. Most people rely on their vehicles to get them to work, school and countless other places. If your car has been repossessed, it’s important to know what your rights are and what actions you should take.
While these loans can be more expensive than traditional ones, due to higher interest rates and down payment requirements, there is one big positive to focus on. A bad credit auto loan gives you a chance to improve your credit. All you have to do is make every payment on time.
Car buyers with good credit can buy a vehicle from practically any seller they want, but if you have bad credit, getting financed for a private party loan, or any place other than a licensed dealer, can be very difficult.
Having bad credit doesn’t keep you from being able to get approved for a car loan. However, it does limit the kinds of lenders who are willing to work with you. With that in mind, here are some tips on getting an auto loan when you have bad credit.
Many states will not even allow dealers to advertise “Guaranteed Credit Approval.” Why? It can be a very deceptive claim.
If you don’t currently have a credit card, you may want to apply for one, but you’ll need to be careful. Applying for credit cards the wrong way can actually make bad credit worse.
The FICO credit score is used by most lenders when making credit decisions. The FICO score is the one you want to familiarize yourself with before applying for credit. However, there are many different credit scoring models, and consumers can easily get confused about the score they are receiving from some sources.