For many people, owning a car isn’t an option and it’s not a luxury. Cars are what enable us to get to work every day, to get the kids to play practice, to attend meetings and get to the grocery store. If you have credit problems, you may have been faced with major problems buying a car to suit your needs.
This can be a scary and frustrating prospect. There are bad credit loans available, but a lot of people wonder whether it’s a good idea to pursue them. Read about bad credit car loans, their benefits and drawbacks, and where you can go to get approved for the credit you so badly need.
Don’t Assume the Worst
The easiest thing to do when you’re buying a car is to just assume the worst. Just because someone tells you your credit is bad, that doesn’t make it accurate. Get a copy of your credit report and see for yourself. It may be possible for you to clean up mistakes and improve your credit score, or it may be an excuse by an unscrupulous broker to give you a bad rate.
Do You Really Need Bad Credit Car Loans?
You might assume that because, for example, you got a sub-prime mortgage rate, you’ll be stuck with the same deal for a car loan. This isn’t necessarily true. Car loans are for less money over less time, and the collateral (the car) is much easier to repossess if you fail to pay. This means that you may actually be approved for a decent rate on a car loan. Don’t immediately assume you’re only good for a bad credit loan.
Don’t Be Afraid to Shop Around
Just because you have bad credit doesn’t mean you have to take the first offer that comes around. Get offers from several lenders; you may actually find one that offers you a decent interest rate. Be careful, though, and get all of your offers within a 2-week period. This is because each offer you get will temporarily lower your credit score, but if you get a number at once, they’ll be bundled and minimize the hit you’ll take.
Shop Terms, not Payments
This is something too many people overlook. Yes, your monthly payment must be affordable. However, you should shop the total term of the loan before looking at monthly payments. It’s much better to get a low interest rate than to prioritize a low payment. It will help to avoid getting underwater with your loan, and the longer term your loan, the more likely it is to overlap with ownership costs of the vehicle.
Where to Start
If you’re looking for offers on bad credit car loans, start with Blue Sky Auto Finance. Just by filling out a few forms and providing some basic information, you can get instant approval and offers from our national network of auto financing lenders and dealers. We’re ready to help get you behind the wheel of your next dream car. Log on and give it a try for free today!