Getting a bad credit car loan is a lot easier than what one may think. The most important thing for you to do when looking for such a loan is to know exactly where you stand in terms of your credit score and what negative marks you have on your credit report. Take the time and spend the money to get your credit report from all three major reporting agencies. Review each one carefully and question any negative marks that you don’t remember or recognize. If the creditor that you question doesn’t respond within thirty days, you can have the negative mark removed from your report!
Here are a few places to find Bad Credit Auto Loans:
- Bad Credit Online Lenders — There are many online businesses that make their living by providing online loans to people with poor credit. If you go this route, stick with well known sites, as there are some online lenders out there who will take advantage of people in desperate need of an auto loan.
- National Lending Organizations — Choose a national lender over a smaller local lender. National lenders have a bigger pool of money to loan and are able to take on riskier investments. Smaller lenders are less likely to provide you a good rate if you have a bad credit history.
- Local Dealerships — Your local car dealership will normally provide you an auto loan regardless of your bad credit report. Beware, however, that they will offer rates of over 20% APR. If you are shopping around for cheap loans, then a dealership should be your last choice. Dealerships will also try to sell you sneaky add on services within the loan contract. Such services include warranties, service plans, and maintenance programs. While these add on services may be valuable to certain people, there are not appropriate for someone who has a budget.
- Lending Cooperatives — If you can find a local lending cooperative in your area, you may be able to find yourself a very good rate on an auto loan. You may need a few references and a guarantor to get approved for the loan, however. If you can make this happen, it is completely worth the extra footwork to get approved. It could mean the difference of a few thousand dollars when all is said and done!
Online lenders, national lending organizations, local dealerships, and lending cooperatives are just a few of the possible places that you can find yourself a bad credit car loan. The people that find the best loans with the lowest rates are the ones who are willing to put in the time, research, and dedication to finding the best possible option for their situation. It is important to remember that you will be bound to this contract from anywhere between one and six years. A few extra weeks of research and phone calls can make your life much easier during the duration of the loan. Work smart and get big benefits!