A lot of car dealerships have advertisements for people who have poor or no credit. This means that. However, you do have to make sure that you exert due diligence to get an affordable deal. Below are some of the things to look for.
1. Know Your Score
First and foremost, you should request a free copy of your credit report so that you know what your current score actually is. You can also use this to find out whether there are any errors on your file. If there are, make sure they get fixed before you apply for any loan.
2. Save Up
Regardless of your credit history, one way to get an excellent deal is to save for a sizeable down payment. The more you can put down, the less you need to borrow, and the less risk a lender takes on you. This is particularly true for new cars, which depreciate as soon as they are purchased. Try to make sure you have at least 10% to put down on the vehicle to get a perfect deal.
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3. Can Someone Co-Sign?
If you have terrible credit, but you desperately want that brand new car, then you could consider asking someone to co-sign the agreement with you. This means that they will be held liable for the loan if you do not pay the loan back. It has to be someone you really trust, therefore, and who really trusts you, and you should not break that trust.
4. Shop Around
You are under no obligation to actually accept the loan that the dealer is suggesting to you. Even if you buy straight from a manufacturer, some lenders are happy to work with you. Hence, make sure you shop around so that you can find the best possible deal.
5. Get a Calculator
Loan representatives are trained to make their offers sound fantastic and affordable. However, whenever you borrow money, you always pay back a whole lot more than what you actually borrowed in the first place, sometimes two or three times as much. Hence, do the math and make sure that you calculate exactly what you will have paid for the car once it is paid off.
6. Establish Good Faith
If you have bad credit because of past problems or bad decisions, it doesn’t mean that you are still that same person. Bring statements from your bank , for instance, to demonstrate that you do actually pay your bills on time. Lenders will consider you on a personal level.
There are many loan options out there for you, and you need to make sure that you choose the most financially viable one for your personal situation. Do your research, and don’t be tempted to jump at the first good thing you come across.