Purchasing a used car with bad credit is possible if you know what to do. Never give up. You can buy a car and build your credit rating at the same time.
It may be a challenge for you to buy a car with bad credit going through a traditional bank or finance company. You will find that most well known finance companies and banks will lend money only to those that have good, prime or marginal credit. If you are not one that has good, prime or marginal credit, consider a dealer or loan company that specializes in helping people with less than perfect credit. There are programs out there designed to help you get the credit you need.
Someone that is familiar with your needs, will save you time and frustration.
Below are tips that will help you buying your car with bad credit.
The two things you need before you go shopping for your new car are:
1.) You must have a job.
2.) Have a good monthly income.
It will be extremely difficult to get a loan if you do not have either one of these!
Getting a "FREE CREDIT REPORT" by simply going online and searching 'free credit reports', will tell you what your score is. Below I have a list from Prime to Very Bad Credit, this will tell you what type of credit you have. If you know your score it will help you in purchasing a new car with bad credit without getting ripped off.
Below is just an idea of how lenders look at your score. Some lenders will not consider you for a loan if you are below 640.
Prime Credit - 720 and up
Good Credit - 680 and up
Marginal Credit - 640 and up
Sub-Prime Credit - 600 and up
Poor Credit - 580 and up
Bad Credit - 525 and up
Very Bad Credit - 480 and up
Be realistic when you go out looking for a car. With bad credit you may have no idea how much a bank will loan you. You should first go and get approved for a loan, then go shopping for a car that you will like and can afford. Doing this first may help you save time, money and frustration.
You may qualify for a "high risk" loan to purchase a "NEW" car. DON'T do it. It will cost a lot more money to do that. Getting a used car is a more sensible way to building your credit.
Remember, when you are shopping for your car you will have to purchase insurance and license plates. You may have to pay a higher interest rate for your car now, but as your credit score improves you may be able to refinance your high risk car loan with something at a lower interest rate. Saving you more money!
Get the best deal you can when your buying a car with bad credit. Don't stop looking for better interest rates and terms as your credit rating improves with time.
It may be a challenge for you to buy a car with bad credit going through a traditional bank or finance company. You will find that most well known finance companies and banks will lend money only to those that have good, prime or marginal credit. If you are not one that has good, prime or marginal credit, consider a dealer or loan company that specializes in helping people with less than perfect credit. There are programs out there designed to help you get the credit you need.
Someone that is familiar with your needs, will save you time and frustration.
Below are tips that will help you buying your car with bad credit.
The two things you need before you go shopping for your new car are:
1.) You must have a job.
2.) Have a good monthly income.
It will be extremely difficult to get a loan if you do not have either one of these!
Getting a "FREE CREDIT REPORT" by simply going online and searching 'free credit reports', will tell you what your score is. Below I have a list from Prime to Very Bad Credit, this will tell you what type of credit you have. If you know your score it will help you in purchasing a new car with bad credit without getting ripped off.
Below is just an idea of how lenders look at your score. Some lenders will not consider you for a loan if you are below 640.
Prime Credit - 720 and up
Good Credit - 680 and up
Marginal Credit - 640 and up
Sub-Prime Credit - 600 and up
Poor Credit - 580 and up
Bad Credit - 525 and up
Very Bad Credit - 480 and up
Be realistic when you go out looking for a car. With bad credit you may have no idea how much a bank will loan you. You should first go and get approved for a loan, then go shopping for a car that you will like and can afford. Doing this first may help you save time, money and frustration.
You may qualify for a "high risk" loan to purchase a "NEW" car. DON'T do it. It will cost a lot more money to do that. Getting a used car is a more sensible way to building your credit.
Remember, when you are shopping for your car you will have to purchase insurance and license plates. You may have to pay a higher interest rate for your car now, but as your credit score improves you may be able to refinance your high risk car loan with something at a lower interest rate. Saving you more money!
Get the best deal you can when your buying a car with bad credit. Don't stop looking for better interest rates and terms as your credit rating improves with time.
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