Bank finance articles and tips

In this article you will discover how to find a good bad credit car loan. Even though you may wonder how these words work together, it will make more sense as you read on.

Here is how you can find a good, bad credit car loan.

The first thing you want to do is pull your credit report. You want to know your FICO score before you go looking for a car loan with bad credit. Check it for inaccuracies and dispute anything that shouldn't be on your report.

Take the time to clean up your report as much as you can. Some of the negative marks on your credit report can be explained, such as a short-term job loss where you fell behind for a month or so. Or maybe you were ill and ended up with some hospital and medical bills.

As you work to clean up your credit report, try to save as much cash as possible for the down payment. A down payment speaks to your lenders that you are serious and committed to paying your loan back.

Currently, dealerships are more eager than ever to sell cars, and will work with you almost any way they can to make a sale.

Put together the necessary paperwork to prove that you have a job and are paying your bills. Bring check stubs for the last two months. Also bring a couple utility bills with you when you go to the dealership. If you have a positive history with your bank, ask them to draft a letter of recommendation to help boost your chances with the dealership.

Do your homework. Check online and familiarize yourself with current interest rates and use some of the on-line loan calculators that help you determine the payment you realistically can handle. Research some local dealerships that have good ratings and high recommendations.

Next, be honest with yourself. If your credit score is below a 600 it may be very difficult to get into a brand new vehicle. And, if you can buy one, know that the amount you will pay in interest over the life of the loan could be astronomical. Be realistic knowing bad credit car loan means higher interest for a new or used vehicle. Select a car based on your ability to make the payments, not the style.

If the initial interest rate is high, speak to the dealership to see if you will be able to refinance after 12-24 months to lower the interest rate and the payment. If you pay the payments on time, this is a possible scenario and will save you money over the life of your car.

Once you have struck a deal and drive the car off the lot, do everything you can to make the car payments on time and pay extra when you can. This will help you to rebuild your credit.

If you enjoyed this article and want to learn more, Click Here... we have the antidote for your car buying blues even if you have bad credit.

Here's a short video for you from 9News called, Coming Back From Bankruptcy that can help you get the car you need and want much easier.

By Mike Reitz
Article Source: http://EzineArticles.com/?expert=Mike_Reitz