Bed credit financing is available to those that need it. However, you may feel that you are out of luck. Perhaps you have heard others say that because you have bad credit you can’t get a loan. Or, maybe you have tried to apply for a loan at a couple banks but you were turned down. This can be a very depressing experience. However, there is an option for you.
There is even bad credit financing available for people who want to buy a car. Do you have a bad FICO score? No worries! You can get approved for a car loan. There is one catch, however. The lower your credit score, the higher the interest will be on the loan. This is the string attached. If you insist on getting a loan, I would suggest you use this opportunity to restore your credit as well. That means instead of getting your dream car, you need to look for something really inexpensive. Then borrow the money necessary to buy it and then pay off the loan on time each month. This is a great way to restore your credit.
So, how do you go about doing this? The first step is not to think about the car you want. Rather, you should first consider your current income and then ask yourself how much of a car payment you can afford each month. Don’t stretch yourself to the limit. Give yourself some cushion in case something happens.
Next, seek out a car that isn’t a lemon, but yet doesn’t cost a fortune either. A car over five years old should do the trick. Ideally, you want to be able to pay it off in three years max, not more. It would be even better if you could pay it off in one or two years.
Now, as you go through this process, there is the possibility of becoming depressed because your finances won’t allow you to get something that you want and is really nice. Do not get discouraged. You need to think long term. Keep reminding your self that this is only for a little while until you can get yourself back on your feet.
Finally, it is time to get the loan. Luckily, even though you have bad credit, there are bad credit financing loan companies out there tripping over themselves for your business. There are whole directories of loaners that you can look through. You should pick three or four loaners to apply to. Don’t be afraid to play them off each other a little. Remember, you don’t have much room to bargain because of your credit. However, telling one loaner that another loaner is giving you a better offer may be enough to get them to come down a bit.
Bad credit financing is available to you. However, before you take out a loan, first make sure you have a plan to pay it back. Don’t just accept the first loan you get. Make them compete so you can get the best rate and use the experience to restore your credit.