Waiting for approval on a loan when you have bad credit can be an anxiety-ridden event. Bas credit can mean having high-interest rates and have issues with getting approved in general. But if you need a new car, you may have to go through the process of getting a bad credit auto loan regardless of the high stakes. Because of your current credit status, here are three odd, yet important things that you need to do when you get an auto loan.
If owning a luxury car is foreign to you, you may still be curious about what it is like to have a top tier vehicle. If you have been researching luxury cars and you are certain on the idea that you want to own one, you should look into certified pre-owned vehicles. These are vehicles that will have more mileage on them than new vehicles, but they make the most sense as a buy for luxury cars.
If can be tough to negotiate a good deal on a car when you have bad credit. The lender may be a bit leery about extending credit to you because they worry that you might not have the ability to pay it back. However, the reality is that although you've had some difficulty in the past, you're ready to turn over a new leaf. You want to get a car so that you can get back and forth to work and handle your daily responsibilities.
Today, credit is essential for most big financial transactions or purchases, like buying a car. However, it is still possible to buy a car with no credit, or with a little bit of credit. Here are a few ways you can do it.
Save Up and Buy with Cash
You can buy the car by saving up enough to pay in cash. This will prevent the need for financing or taking out a loan for the car.
According to the Small Farmer's Research Center at Alabama A&M University, there are two major credit scoring models that most lenders use to determine whether you have great, good, or bad credit. The FICO score ranges from 300 to 850, while the VantageScore falls between 501 and 990. Should your lender determine that your score falls under the bad credit category, you'll need to locate an auto dealer who provides bad credit auto financing in order to get the car you need to get around.