While there may be other more personal, and well, more complicated things from your past that you may not be able to get around, a not so clean credit history can still get you that much needed car loan. Despite being a major factor in used car loans or refinancing car loans, your credit history can still get you a good deal on car loans. One resource for personal or other loans that I highly recommend is www.creditsources.org - this site can help nearly anyone, with any type of credit, locate financing.
Here are some tips you can use if you need to have a car loan approved despite a bad credit history.
- Experts suggest that at least once every year, you evaluate your own credit report and ensure that there are no wrong postings or wrong information that can affect future loans. The website annualcreditreport.com can give you a free copy of your annual credit history and see for yourself any inaccurate information. If you find any erroneous information, take note of it and report it to the appropriate office right away. Remember, your credit history can affect any of your other transactions in the future, and not just your car loan. It may even turn out to be that you do not have a bad credit history after all, if you look at your credit report carefully.
- Be ready with documentation that can serve as your certification for your earnings and employment. Getting them ready on hand can help get you get that car loan a lot faster instead of preparing them afterwards.
- Before you head off applying for car loans, check your credit scores. Unlike before when this type of information was only made available to lenders, consumers and account holders themselves can now access their credit score. This can be helpful to give you a realistic and achievable car loan depending on your credit score. Get a loan that you think can be approved in accordance with your credit score.
- Search out the best option for car loan rates. Despite a bad credit history, there would still be options around, and you can compare loan rates from various lenders.
- Have your car loan approved first before you approach a dealer. Don’t do it the other way around. Some dealers can cut corners and give you a car not really worth your loan. It would be best that you handle all your car loan documents, and only rely on the dealer for the actual purchase.
To take your name out of the subprime list and get a better credit standing, it is best that you improve your credit score by paying on time and not stretch your credit farther than you can pay. In as little as two years of improved credit, you might just get that car loan refinanced at a much lower rate. It can be a win-win situation even if you start off your loan with a bad credit history. A subprime loan can even work for you if you know how to handle it every step of the way, and the best way to do it is by reviewing your credit, and paying on time. Make that commitment to recover from bad credit.