Feb 26 2010
Shopping For Car Financing With Poor Credit.
Steps You Should Take Before You Start Shopping For Car Credit Online!
Searching for a reliable pre-owned car is hard enough, but if you are looking for auto financing online on top of that it can become a extremely difficult! Usually its pretty easy to spot a decent deal at a local car dealership. Just make sure that if you are getting a car loan and you have no credit that they don’t try and sneak in a few extras that you definitely do not want. These types of maneuvers are how some auto dealers get you to go in your pocket for more money than you actually want to spend.
If you have some sort of bad credit, it can be a nightmare when your auto dealership or finance company gives you an extremely high interest rate on your car financing. It makes you feel like it is impossible to get a good deal with credit problems. Sometimes this is accurate, but not all the time.
The bottom line is that dealerships want and need your business. If you feel like you are not getting a fantastic deal, you have the power to leave and continue your car shopping journey at a different dealership! In this article I will give you some Information on what to do to prepare yourself for haggling and getting an honest deal on a used car loan.
First thing you should know… Know Your Credit Score BEFORE going to the used car lot car dealership! If you have a good idea of how poor your credit really is before entering the used car lot, you will have a lot more of the upper hand when trying to negotiate a deal. Usually what people do is go to a car dealership, find the automobile of their dreams and then speak to a car salesman about purchasing that particular vehicle. Usually when you do this, and you find out afterwards that you don’t qualify for a good credit auto loan, the auto dealership then has the chance to take advantage of you by possibly overcharging you on the loan, knowing that you love that vehicle and you will probably take the deal anyway. This in the long run can cost you a ton of extra expense that you didn’t really need to spend.
Your initial 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 car loan.
Lenders use the FICO score as one of the single most important factors for determining credit buying power. Credit scores usually range from 390 to 900 with anything over 699 being considered as good credit. If you walk into a car lot saying you have poor credit and they run your report and find out that you have a 680 FICO score, the dealer may consider offering you a higher interest rate simply because you thought your credit history was extremely limited, when in essence it was better than you thought. You must remember that car stores have to make a certain amount of profit on every automobile they sell because they have a huge overhead. So it is expected that they try and charge you more when they can. That is just how this kind of business works. But I am a true believer that a deal has to be fair for the dealership as well as the customer. I feel that no person should be taken advantage of!
Its never been easier to find an easy car loan online. These days all you have to do is search for auto financing with bankruptcy and within seconds you will find Top websites like DrCarLoan.com.
