#car loan bad credit
Bad Credit Car Loans? How Buying a Vehicle Can Improve Your Credit Score
Researching bad credit car loans is a great way to begin restoring your credit and boosting your credit score. If you have bad credit, or no credit, but you need a vehicle in order to get to your place of employment, a smart option is to find a way to get financing on quality used vehicle. By doing this, you have a means of transportation to your job while at the same time improving your credit rating. Making sure you re able to keep up with your car payments along with your other bills (utilities, rent, phone and credit cards) will help show that you can manage your money. Here are some helpful tips to consider as you research your options for bad credit car loans.
Bad Credit Car Loans – Tip #1: Shop for a Quality Used Car
While buying a used car can be a risk due to unexpected maintenance and repairs, you still have options. Buying a used vehicle gives you greater choice since the cost of a used vehicle is much less than buying new. You could buy a $20,000 dollar car for under $10,000 due to it s age. It may be a perfectly good vehicle but it s value depreciates quickly. While there certainly are buy here, pay here dealers that sell to people who can t qualify for traditional financing, you re not helping your credit score situation by paying cash. If you choose this route, just be cautious of the vehicle you re buying. You won t save anything on a cheap used car that you re constantly repairing. Bad credit car loans are a better option than paying cash if your goal is to restore your credit.
Bad Credit Car Loans – Tip #2: Guaranteed Credit Approvals
To restore your credit, you should consider applying for used car loans for bad credit. And there are car dealers that can actually guarantee loan approval despite a customer have bad credit. Going this route will help your credit score as discussed above.
Bad Credit Car Loans – Tip #3: Shop for a Quality Used Car
Do some research on the cars you are considering. For example, ensure the car(s) you are considering provide exactly what you need. Look into consumers and CarFax reports for any common problems with the specific makes and models you are evaluating. Look for any information on a vehicle that can save you money. Maintenance costs, fuel mileage, and re-sale value are smart things to look for when considering a vehicle. Ask for service records to see what kind of maintenance has been completed and that it has been well taken care of. You could also consider having a third-party mechanic look over the car to make sure it is in good sound condition. Don t buy from the first dealer that happens to offer bad credit car loans. Do your homework!
Bad Credit Car Loans – Tip #4: Report Your Payment to Credit Bureaus
Ensure that all your payments are reported to the three major credit bureaus. Making your payments on-time will help your credit rating. That s only if your payments are reported to the credit bureaus. So by the time you have this car paid off, you may have a good enough credit score to buy a new car the next time around.
In closing, while applying for bad credit car loans in order to finance a used car purchase is a great way to boost your credit rating, failing to make your payments is not. Shop around to ensure that you re getting the best interest rate and cost of the vehicle you are interested in. And be sure go over your budget to verify what you can truly afford. When budgeting, you must consider your payments as well as fuel, regular maintenance, insurance, and the potential for unforeseen problems.
Keeping up with all your payments and expenses will help you restore your credit rating and score.