4 Tips for Buying a Car With Bad Credit
4 Tips for Buying a Car With Bad Credit
Posted on November 20, 2024
There are a number of factors affecting your credit score, such as late payments. Regardless of the reason, poor credit makes it difficult to get a traditional auto loan. Luckily, bad credit car loans are available. With the tips below, you can get back on track - and into your next or first vehicle.
Consider a Co-signer
You have the option of getting a co-signer. It's a huge responsibility. Keep in mind, if you miss payments your co-signer will be responsible for the payments. Choose this route as a last resort.
Shorten Your Car Search
Each dealer you visit or online application you fill out runs a credit check. Each time this is done, it lowers your score. The good news is you can work around that situation. It's recommended that you spend only two weeks shopping for your auto. This way the credit checks count as one inquiry.
Review Your Credit Report
You can get a free copy of your credit once every 12 months. Review it carefully. Note any inaccuracies. Incorrect information lowers your score. If there's anything that doesn't belong on the report, then have it corrected as soon as possible.
Get a Short-term Loan
Generally, short-term loans are better. In many cases, the interest rates are lower. So, consider getting three year loan rather than five-year financing. The other benefit is you'll own your car free and clear in a shorter amount of time.
Bad credit car loans are beneficial. You can get the vehicle you need while building up your credit. It's worth applying for when you know what to expect. With the tips above, you can get the best financing for your budget.