3 Steps to Get a Bad Credit Auto Loan
Do you want to own a car but are having trouble getting an auto loan? Is your poor credit history coming in the way of your dream? Are poor personal finances forcing you to use public transport instead of driving around in your own car? Maybe it's time you considered taking a bad credit auto loan?
Earlier, if you had a bad credit score, getting a loan was out of the question. But nowadays, even with the poorest of credit scores, getting a loan isn't impossible. Even if you've been rejected in the past, if you apply for a bad credit auto loan in Seattle, you will most certainly be approved and be able to buy that car you always wanted. Given below are a few tips to help you prepare your application for a bad credit auto loan. As long as you use these tips, your application will definitely get approved:-
1. The first and probably the most important thing for you to decide is the amount of money which you are going to borrow. Remember, you have a low credit score and therefore will be forced to pay a high rate of interest. This means that every penny you borrow will cost you more in terms of interest. Your monthly installments will be higher as well. Therefore, you should stick to the basics and only borrow as much money as you can afford. Even if this means settling for a cheaper car, go for it. You can always upgrade when you have a better score can't you?
2. Just because you have a low credit score doesn't mean it is of no importance. It is important that you know exactly what your credit score is and why it is so low. This'll help you while bargaining with a lender for interest rates and repayment schedules. So what if you have a bad credit score? At the end of the day, you are borrowing money and will be paying it back. You have every right to fight for the best deal.
3. Lastly, you need to make a list of the top lenders in your area. You'll be surprised by the number of bad credit auto loan lenders in your area. You should short list at least ten of them. Once you have short listed these lenders, you should speak with each of them and ask them for an offer. Once you have received multiple offers, go through each of them and choose the best three offers. But don't just go with the best offer. Negotiate with each of the lenders to try and get the best deal. You never know, the lender with the third best offer might just make a fresh offer which ends up being the best. You wouldn't want to miss out on this just because you were too lazy now would you.
Earlier, if you had a bad credit score, getting a loan was out of the question. But nowadays, even with the poorest of credit scores, getting a loan isn't impossible. Even if you've been rejected in the past, if you apply for a bad credit auto loan in Seattle, you will most certainly be approved and be able to buy that car you always wanted. Given below are a few tips to help you prepare your application for a bad credit auto loan. As long as you use these tips, your application will definitely get approved:-
1. The first and probably the most important thing for you to decide is the amount of money which you are going to borrow. Remember, you have a low credit score and therefore will be forced to pay a high rate of interest. This means that every penny you borrow will cost you more in terms of interest. Your monthly installments will be higher as well. Therefore, you should stick to the basics and only borrow as much money as you can afford. Even if this means settling for a cheaper car, go for it. You can always upgrade when you have a better score can't you?
2. Just because you have a low credit score doesn't mean it is of no importance. It is important that you know exactly what your credit score is and why it is so low. This'll help you while bargaining with a lender for interest rates and repayment schedules. So what if you have a bad credit score? At the end of the day, you are borrowing money and will be paying it back. You have every right to fight for the best deal.
3. Lastly, you need to make a list of the top lenders in your area. You'll be surprised by the number of bad credit auto loan lenders in your area. You should short list at least ten of them. Once you have short listed these lenders, you should speak with each of them and ask them for an offer. Once you have received multiple offers, go through each of them and choose the best three offers. But don't just go with the best offer. Negotiate with each of the lenders to try and get the best deal. You never know, the lender with the third best offer might just make a fresh offer which ends up being the best. You wouldn't want to miss out on this just because you were too lazy now would you.