Buying A Car With Bad Credit

by : Tom Tessin

You have probably seen the commercials on television that advertise new cars with 0 percent interest for a period of time. This sounds really great because who doesn't want a low interest rate? Everyone does, but only the best qualified buyers receive that rate. Everyone else will receive another rate based on their credit score. And if you so happen to have bad credit then you will find buying a car all but impossible from traditional sellers. That means you may need to shop smaller car lots and work with companies that offer on the lot financing. In many cases they are used to dealing with people with bad credit and will be able to work something out for you. The following suggestions will also help you buy a car with bad credit.

Big Down Payment

If you have bad credit then you won't get a car loan with no down payment. Instead, to make the terms o the loan better for you it is a good idea to have as big a down payment as you can. This might seem difficult at first because when you have bad credit you may be stretched for cash. If this is the case then saving a large sum of money might seem impossible. Even if that is the case you will be able to get financing with almost any down payment, as long as it is something. But, if you have a large down payment then you will be able to better negotiate the terms of the loan.

Short Loan Term

Another good idea to improve your odds of getting a car with bad credit is to take out a short term loan to help pay for the car. Not stretching the payments out over six years shows you are serious and interested in paying the car off as soon as possible.

Small Dealers

There are many small dealers who only work with those who have bad credit. If this is you then what you need to do is find a company near you and ask them about financing for your credit situation. .Many times as long as you have an average sized down payment, a job, and a telephone then you will be approved for financing.

As you can see there are ways to get a car loan even when you have bad credit. Just shop around and find the best terms you can for your situation. The truth is that the worse your financial situation the more difficult it will be to get financing. But, if you keep at it and provide you are worth the risk then companies are willing to give you a shot.

No matter what type of credit you may have, you can probably find a loan anywhere. The important part is to make sure that you read the terms and conditions over before you put the pen to the paper. Sometimes the smaller dealership guys like to rip you off in anyway possible. Being smart can get you a long ways.