Auto Loans With Bad Credit-Most People Cant Do Without

While some people may be able to get by without a vehicle, the truth is that most people can’t. To put it simply; if you need a car then you need a car. Maybe you live somewhere that doesn’t have any public transportation, and you certainly can’t be a hermit. You have a job to go to and not having a car isn’t an option. But you have an additional concern because your credit isn’t all that great. If so, then you are not alone, however you really can get auto loans with bad credit.

One of the biggest factors in what type of loan you can get is your credit score. The better your score the better your loan should be. It takes a while for any changes you make to be reflected in your credit score, so you should start making changes right away. Also, if there is any way you can delay purchasing a car, it will give you more time to get your credit into better shape.

When you have bad credit you pay more for a loan than someone who has good credit. Where someone with good credit may be able to get a car loan for 5%, someone with bad credit can expect to pay anywhere from 12% to 25% for a similar loan. Let’s use a ,000 loan with 60 monthly payments to see how the rates compare. At 5% you will pay a total of ,320, but at 12% and 25% that turns into ,345 and ,610 respectively. That’s why it’s so important to do what you can to improve your credit.

Always remember that it’s your money, and that means it’s your responsibility to manage it wisely. Shopping around for the best possible loan, regardless of how good or bad your credit is, is the smart thing to do. As you have already seen, a few percentage points could save you thousands of dollars. Your goal is to get as good of a rate as you can. Even if it took you a few hours to track down the best rate, it would be more than worth it.

It should come as no surprise that the economy isn’t exactly at its most robust right now. The good news is that lenders and car dealers are aware of this and are working hard to help people get auto loans with bad credit. In the past lenders may have laughed you out the door if you had bad credit, but today they will practically bend over backwards to work something out for you. Therefore, if the first lender you go to turns you down, then go to another one…and then another…and then another if you have to.

Having bad credit isn’t any fun, but it doesn’t have to prevent you from getting an auto loan. Just be sure that you compare them carefully and read all of the fine print. That way you will be able to get a car you want at the best possible price.
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