Shopping For A Car Loan With A Bankruptcy.

by Josephine M. Campos on December 2, 2011

Poor Credit Car Loans. How To Prepare Yourself Before Visiting The Dealership In Order To Get A Good Deal!

It can be hard enough finding a good second hand auto that will be reliable and give you at least a few years of good service. But finding that along with a car loan to go along with it, if you have credit problems can be a lot more challenging. There are plenty of car dealerships out there that will give you a decent deal on a new or used car. The problem is that when you do find that great deal, make sure the dealer does not try and add in tons of extras that you do not need, that will do nothing but wind up costing you a large amount of money that you really cannot afford to spend!

If there are blemishes on your credit, it can be tough to take when your salesman tries to explain to you that you do not qualify for a lower interest rate and better terms on your auto loan. It can sometimes make people feel helpless in getting a honest auto finance offer.

The bottom line is that dealerships want and need your business. If you feel like you are not getting a fair deal, you have the power to walk away and continue your car shopping journey someplace else! In this article I will give you some Information on what to do to prepare yourself for bargaining and getting the best deal on a car loan after bankruptcy.

The most important thing to get before you shop is “Credit FICO Score”. You need this in order to get an idea of where you stand and how bad your credit really is. Most of the times people go about the whole buying process backwards. They go to a car dealer, find a good automobile that they like and then the representative comes back with an auto financing approval only to tell you that you barely qualified for this car because of your poor credit history and credit score. They may just be trying to charge you a higher interest rate and in turn make a few thousand dollars extra on your deal, than if you already knew what your credit history looked like. a 1 to 5% increase in your interest rate can mean as much as $3000 more in interest payments coming out of your wallet over the life of the loan! This is obviously something you don’t want happening.

Your very first step should be to go on the internet and find a company that offers credit reports with FICO Scores. Get a credit report with scores from all the three major credit reporting agencies such as Trans-Union, Equifax and Experian. All three credit scores will vary slightly but you can use the highest score of the three to your advantage if you have to! Also remember that if you contact the credit bureaus directly, they offer you a free credit report once a year. This is something that everyone is eligible for, and is very important if you want to get a good deal on your next bad credit auto financing.

Lenders determine your credit risk by looking at your credit score. Credit FICO Scores can range from as high as 900 to as low as 450 or so. Obviously, the higher the score, the better interest rate and deal you can get! What usually happens is that if you do not know your score, the car dealer can lead you to believe that your credit is much worst than it really is, and tell you that this rate is all you qualify for because your score was to low. This can end up costing hundreds of dollars more in the long run. Auto dealers always have some room to haggle. When doing financing, they usually make a few points on the interest off the entire loan. Keep in mind that dealerships are in business to make money an if they do not cover their overhead, they will not be open for business very long. So when haggling keep in mind that the deal has to be good for both the consumer and the dealership! It’s only fair.

Bad credit auto loans are a common thing these days. In this economy these types of loans are searched for by people every day. You can search for bad credit auto loan financing on Google, and find destinations such as that have helped people like you for over a decade!

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