Getting bad credit car finance is not as difficult as it might seem to you. You have to clear a few things, take a few steps and you will be absolutely ready to get your car financed. There are many banks which give you bad credit car finance, but they usually charge a high interest. So, a better idea would be to clear your bad credit as much as you can before you apply for your car finance.
Do your Homework Well
Do your checking thoroughly before the banks and car companies check you. You might already know that your credit report is in a bad state, but re-check everything before you apply for bad credit car finance. You can order credit report from TransUnion, Equifax and Experian.
These three credit websites help fulfill the federal criteria of giving out free credit reports every year. This is in accordance with the federal law to give away credit scores every year. It is important for you to know your “Beacon” or FICO score on the credit report. A range of 600-700 is manageable. But problems will arise with bad credit car finance when your scores are below 550. However, it does go down every time the lender or the car company gets it checked. Check the FICO or Beacon score in your report to be familiar with your score. As long as it is above 600, it is not that bad. Now that you know your scores, wait to raise your score points and then apply for the bad credit car finance.
Bad Credit Car Finance Application
Once your homework about your bank statements and your bad credit is done, you can proceed to buy your car. But always remember to clear away as much of the bad credit as you can before you apply. Another important point is to know the market well before you apply for your bad credit car finance. Also, when you get your credit report, check the entries properly to see if there are any mistakes in the entries.
Go through them so that you have an idea about the standardized rates. Read about the interest rates and loans from websites before buying the car. This way, you know whether the rates they are charging from you is the standard rate. Resolve these bad credit issues and then request for the bad credit car finance.
Some Important Points to Remember
Even though you plan to avail the bad credit car finance, make sure that you have enough money to make a down payment. Besides, when you are buying your car, do not get carried away and buy a car you cannot afford. This will give confidence to the banks and the car companies in accepting your loan application. Besides, when it is time to select your car, do not ever select a car just because you like it before checking its price. The car might be very good, but you have to pay for it. So choose a good car, but one you can afford. If your car loan gets turned down, keep back up options so that your dream of buying a car is not over.
Do your Homework Well
Do your checking thoroughly before the banks and car companies check you. You might already know that your credit report is in a bad state, but re-check everything before you apply for bad credit car finance. You can order credit report from TransUnion, Equifax and Experian.
These three credit websites help fulfill the federal criteria of giving out free credit reports every year. This is in accordance with the federal law to give away credit scores every year. It is important for you to know your “Beacon” or FICO score on the credit report. A range of 600-700 is manageable. But problems will arise with bad credit car finance when your scores are below 550. However, it does go down every time the lender or the car company gets it checked. Check the FICO or Beacon score in your report to be familiar with your score. As long as it is above 600, it is not that bad. Now that you know your scores, wait to raise your score points and then apply for the bad credit car finance.
Bad Credit Car Finance Application
Once your homework about your bank statements and your bad credit is done, you can proceed to buy your car. But always remember to clear away as much of the bad credit as you can before you apply. Another important point is to know the market well before you apply for your bad credit car finance. Also, when you get your credit report, check the entries properly to see if there are any mistakes in the entries.
Go through them so that you have an idea about the standardized rates. Read about the interest rates and loans from websites before buying the car. This way, you know whether the rates they are charging from you is the standard rate. Resolve these bad credit issues and then request for the bad credit car finance.
Some Important Points to Remember
Even though you plan to avail the bad credit car finance, make sure that you have enough money to make a down payment. Besides, when you are buying your car, do not get carried away and buy a car you cannot afford. This will give confidence to the banks and the car companies in accepting your loan application. Besides, when it is time to select your car, do not ever select a car just because you like it before checking its price. The car might be very good, but you have to pay for it. So choose a good car, but one you can afford. If your car loan gets turned down, keep back up options so that your dream of buying a car is not over.
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