How_To_Get_A_Car_Loan_With_Bad_Credit

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How To Get A Car Loan With Bad Credit

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Summary:
Recent years have made it a little easier to get a car loan - even if you
have bad credit. The truth is that some lenders are actually looking to
give money to people with bad credit. Typically called sub prime lenders,
they can give you the loan you need to buy the car you want.

Although they certainly will check your credit record, they will be more
concerned with your ability to pay and your current employment. If you
have had your current job for about six months and ...


Keywords:
loans, car loans, finance, car, car finance, apr, high, bad credit,credit
history, apply, deal


Article Body:
Recent years have made it a little easier to get a car loan - even if you
have bad credit. The truth is that some lenders are actually looking to
give money to people with bad credit. Typically called sub prime lenders,
they can give you the loan you need to buy the car you want.

Although they certainly will check your credit record, they will be more
concerned with your ability to pay and your current employment. If you
have had your current job for about six months and make enough income to
reasonably make the payments, you can most likely get the car loan.

Another thing that will be necessary is to have an active checking
account. Your payments may need to be automatically deducted from your
checking account each month to make them happy. It provides a little more
security for them - especially if you have your paycheck directly
deposited into that account.

Before you apply for your car loan, however, there may be a couple of
things you can do to get better interest rates. You need to get a copy of
your credit report and make sure everything on it is accurately reported.
If it needs correcting, contact the reporting agency and work to have the
corrections made. Then, you will need to wait at least a month (possibly
two) to make sure the corrections are actually applied. Remember that
your interest rates are directly tied to this report, and so will be the
amount you can borrow.

If possible, it is also a good idea to pay down any existing debt you
have. This will help bring up your credit score even more. A lender
always considers your debt to income ratio and will give you a better
deal with the less you owe. Owing too much will mean you do not get as
good a deal as you might expect.
You will also want to know exactly how much you can afford, since getting
too large of a loan can only hurt you more. Set yourself a goal and
borrow only what is good for you at this time.

Apply online to several lenders and get auto loan quotes from them. You
will probably want to get at least six different ones and be sure that
you apply for them around the same time - within about 10 days. This way,
it will only be counted as one loan application by the credit bureaus.

Compare the various loan applications and then apply to the best one.
Seek to get preapproved for your auto loan so you know exactly how much
money you have available to you. Besides that, taking a check to the
dealer will help you get better terms. Because you are not sure how much
you will receive, it is not a good idea to choose your car before you get
the blank check. It will expire within about 30 days or so. Be sure to
investigate car prices online and it will enable you to get more car for
your money. If need be, or when your credit gets a little better,
refinance the loan for an even better deal.

				
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posted:2/7/2011
language:English
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