Most Americans understand that we need to have car insurance for our vehicles. What most do not understand is that in order to gain access to a new or used vehicle, your credit has to be immaculate. You may find that your application is denied if you have missed just one payment in the past. Here are a few things to consider when looking for affordable car loans with a bad credit score.
Many people who have purchased vehicles know the routine. You first meet a salesperson out on the floor. They convince you to purchase a new or used vehicle. You follow them to their office and they have to do a check on your previous history. Depending upon this, you will either get the loan or you will not.
For those of us that do, we now have a beautiful new vehicle to look at in our driveway. We also have a payment to look forward to over the next few years. But for those of us that failed to receive funding, we may be wondering what we can do so that this does not happen ever again.
Before you ever walk into a dealership, you need to have an idea of how much you want to spend. You also need to know your budget and what percentage rate you’re willing to take for the life of the car payment. You then need to look at your budget for your entire household and see if getting that new automobile is really the best choice for you.
Now you need to look at how often you are making your minimum payments. If you have other debt that is virtually burying you financially, it is probably a good idea to stick with the auto that you have. If you can swing it, then it is time to look at your payment history.
Have you ever been late on any payment that you are making? If so, you need to increase your percentage rate by a couple points and also be prepared to be rejected when you go to the dealership. They do not want to have bad risk on their books and therefore if you are unable to pay your bills every month, you probably should not acquire a new source of debt.
Another thing to consider when looking for the best rates possible is to shop around and look for dealers that are desperate to sell. Some of them will ignore your credit score as long as it is not too bad. And if you think that you can make your payments based upon your monthly income, then getting that new or used car is probably a great decision.
The final tip in securing cheap percentages is through the art of negotiation. Never take the first offer presented. If you do, you are probably making a car salesman laughed all the way to the bank. But through tactful negotiation or bartering, you can lower the percentage points sometimes by half which will directly affect how much you will pay each and every month.
Finding affordable car loans is actually not that difficult as long as you have a decent credit rating and your monthly income, combined with your bills, shows a debt to income ratio that will make you a good candidate for driving away that new or used vehicle that you have always dreamed of.