There are a lot of companies who offer the service since they normally ask for higher interest rates for those with bad credits, meaning that they can make more money. Bear in mind that you need to know your exact credit score so you will know where you stand. This will verify whether you are eligible for the loan. A good credit score is 720-850.If your score is below 600 then you need to clean up or repair your credit. To repair ones credit is possible although it’s not that easy and it can’t be done in an instant. Knowing your exact credit score would also help you evaluate the APR’s offered by different companies. APR simply means the Annual Percentage Rate.
Getting a car loan would not only depend on your credit history since your current status would also be a major factor to consider. Depending on your current financial status you would still be able to apply. Do a thorough research on the companies that are offering car loans with bad credits.
Before entering into a contract with a company for the specific loan, make sure that you already checked out the company to ensure that you are not entering into any kind of scam. There are a lot of companies that would offer used car loan but would take advantage of you one way or the other. Some companies would offer you extended warranties when you don’t really need one because all they want is for you to part with your money. So make sure you really need it before getting one. An auto extended warranty has nothing to do with the “original car manufacturer”. It’s a contract between the company that sold you the used car and yourself and they normally pay for any needed repairs stipulated in the contract. And in case you really need one then chose a company that has a solid reputation so that you will not be wasting your hard earned cash.
Salespersons are normally very aggressive and would push you into a corner just to get you to agree with them; they normally speak with you using technical terms which you won’t probably understand just to close the sale or deal. If you don’t understand something, you really need to ask and make sure that you read the terms and conditions of any contracts before signing it.
Here are a few tips for getting a used car loan:
- Make sure that you know your exact credit score/report.
- Close old credit accounts that you are no longer using because it can drag your credit score down.
- Check out the places and companies where you can get the used car loan.
- Ask questions when you are talking with a sales agent/sales person.
- Consider getting online car loans since they don’t normally charge for application fee or ask for down payments.
- Research the needed requirements/qualifications before applying because you may or may not qualify for the loan.
- Be careful of scams because there are a lot of scams with this kind of transactions.
- Choose wisely when it comes to rebates and low APR loans.