Car buyers with good credit can usually walk into a dealership, pick out a car, sign some paperwork, and drive off. But for buyers with bad credit, it isn't always such a smooth ride.
Helpful Tips for Buying a Car with Bad Credit
Before you head to the dealership, you'll want to take some extra steps. The most important thing you can do when buying a car with bad credit is be prepared. Here are some helpful tips:
- Check your credit – Pull your credit reports and go over them. You’re entitled to a free copy of your report every 12 months from each of the three national credit bureaus (Experian, TransUnion, and Equifax). Make sure there aren’t any mistakes on your reports, but if you do find any, dispute them immediately. Once you know where your credit stands, you can work your way toward rebuilding it.
- Keep up with current bills – One of the fastest ways to improve your credit is to pay your bills on time. Your payment history on accounts is a huge component of your credit score, so make sure to keep up with your bills.
- Look up current interest rates – Using online tools, you can look up the current interest rates on auto loans. You’ll be able to estimate your interest rate by doing this. Keep in mind that borrowers with bad credit will face higher interest rates and this will affect monthly payments and the total cost.
- Save up for a down payment – To lower the costs of higher interest rates, save up for a down payment. The bigger the down payment, the lower the amount you need to borrow. A smaller loan means paying less in interest charges over the loan term. Also, you’ll typically have a wider selection of vehicles to choose from if you have a bigger down payment.
Finding someone who can work with your credit issues can be a challenge on its own. Buying a car with less than perfect credit isn’t an easy task, but Auto Credit Express can help get you started.
We work with a nationwide network of special finance dealers who have the lenders available to help people in a variety of problem credit situations. Let us point you in the direction of a local dealer who can help. Just fill out our free, no-obligation auto loan request form today.