What To Do BEFORE You Shop For Bad Credit Auto Financing
Bad Credit Auto Financing. How To Prepare Yourself Before Visiting The Dealership In Order To Get A Good Deal!
It can be hard enough finding a good pre owned vehicle that will be reliable and give you at least a few years of good service. But finding that along with auto financing to go along with it, if you have bad credit can be a lot more challenging. There are plenty of car dealerships out there that will give you a great deal on a new or used car. The problem is that when you do find that honest deal, make sure the dealer does not try and add in tons of extras that you do not need, that will do nothing but wind up costing you a great deal of cash that you really cannot afford to lay out!
If you have some sort of bad credit, it can be a nightmare when your car dealership or bank gives you an extremely high interest rate on your auto financing. It makes you feel like it is impossible to get a good deal with credit problems. Sometimes this is true, but not all the time.
The bottom line is that auto dealers want and need your business. If you feel like you are not getting a honest deal, you have the power to leave and continue your car shopping journey someplace else! In this article I will give you some tips on what to do to prepare yourself for haggling and getting an honest deal on a used car loan.
First things first… Know Your Credit Score BEFORE going to the auto dealership car dealership! If you have a pretty good idea of how weak your credit really is before stepping foot in the car dealer, you will have a lot more of the upper hand when trying to negotiate a deal. Usually what people do is go to a car dealership, find the vehicle of their dreams and then speak to a car salesman about the purchase of that particular used car. Usually when you do this, and you find out later on that you don\’t qualify for a good credit auto loan, the car dealer then has the chance to take advantage of you by possibly overcharging you on the loan, knowing that you love that car and you will probably take the deal anyway. This in the long run can cost you a lot of extra money that you didn\’t really need to spend.
Your initial step should be to go on the internet and find a company that offers credit reports with FICO Scores. Get a credit report with scores from all the three major credit reporting agencies such as Trans-Union, Equifax and Experian. All three credit scores will vary slightly but you can use the highest score of the three to your advantage if you have to! Also remember that if you contact the credit bureaus directly, they offer you a free credit report once a year. This is something that everyone is eligible for, and is very important if you want to get a good deal on your next bad credit car loan.
Lenders use the FICO score as one of the single most important factors for determining credit worthiness. Credit scores usually range from 390 to 900 with anything over 699 being considered as good credit. If you walk into a car dealership saying you have limited credit and they run your report and reveal that you have a 680 FICO score, the dealer may consider offering you a higher interest rate simply because you thought your credit history was extremely poor, when in reality it was better than you expected. You must remember that auto dealerships have to make a certain amount of cash on every car they sell because they have a big overhead. So it is expected that they try and overcharge you when they can. That is just how this kind of business works. But I am a true believer that a deal has to be fair for the dealership as well as the customer. I feel that no car shopper should be taken advantage of!
Sometimes it can be hard to locate an online bad credit auto loan service that will do what the say, Get You Approved on car financing online! UworkUdrive.com\’s name Speaks for itself. Basically If You Work You Drive! They are online auto financing industry veterans !
