9 Secrets To Buy A Car With Bad Credit
Monday, November 27, 2017, 6:00 AM | Leave Comment
We all strive to maintain a positive and healthy credit history by paying back the loans we borrow on time.
One always needs a good credit score to build trust in people that they will need support from. When you pay loans promptly you improve your chances to get others even in larger amounts.
Good credit score also helps you to purchase valuable properties at reduced interest rates, and you then clear the balance within the time that you will agree with the sellers. The properties can be a home or a car, which you need for a successful life.
However, even if you have a bad credit score you can still buy that car that you really want, only that it will be at a higher interest rate.
The following are some of the secrets that you need to know and work on if you need to buy a car with a bad credit score.
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Fix Your Credit Status First
If you are not to buying the car within a short period, you can try and fix your credit score by first checking a report that will give you its status. In that case, you can try to clean your credit status so that you can be offered good terms when doing the purchase.
The clean-up that you can do includes:-
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Disputing errors that could have been reported by some financial institutes concerning your servicing of loans that you had borrowed
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Paying off money that you owe loan providers
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Including positive information that you may have gained in the process of your borrowing and repaying
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Avoid Credit Like Plague
After you have streamlined your credit history or at least made it look a bit better, do not lead yourself into additional credit issues by taking items that might lead you to soiling your credit status again.
Before you buy the car, you should avoid any loans as much as you can. Pay your rent on time, avoid new credit cards and any other transaction that can tarnish your score.
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Look For The Best Terms Of Payment
At any given time, a seller will be looking at making more money out of the deal, and therefore you should focus on buying from the one who will give you the best offer.
The best term of the deal should be low interest rates, and a payment that should be in the shortest time possible.
You might be distracted by an offer of low monthly payment and a stretched payment period, which will in the end cost you an arm and a leg.
A good deal is where you can pay the loan within 36 to 48 months. To get one car you need some extra accessories like car speakers, led lights etc. On car speakers you can check this guide for the best offers.
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Be Ready For A Down Payment
You will build confidence in the seller when you offer a down payment of about 20% of the total cost of the car. From there you can negotiate the best terms even with a bad credit score.
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Look For Car-loan Financiers
There are auto loan financiers who will get you off the hook even with your bad credit status. Ensure you meet all their conditions and they will hence help you to get the car you want.
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Check Your Financial Ability
Go for a car that you will be able to pay for, after you have deducted all your monthly bills. The balance of the money you get should be able to cover the monthly payment for the car that you are looking forward to purchasing.
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A Pre-Approved Loan Will Work
Talk to your bank to give you a pre-approved loan for buying your car. In that case, the sellers won’t have to worry about your non-payment or a bad credit score, because the loan guarantees that you will pay for the car in full.
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Read And Sign The Paperwork
Any dealer who is offering their cars on loan will give you their terms and conditions verbally, and whatever they say is what should be on the agreement.
Read it carefully to ascertain that it indicates everything you have been told, and don’t forget to sign it before you leave with your car.
If you leave without signing and they call you back to sign it, you might be signing a completely different agreement.
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Be Aware Of Scams
Some dealers are aware of the state of desperation that some buyers with bad credit score may have. They might therefore trap you with predatory loans that will sink you further into your bad credit score situation.
You will get a good car at good and positive terms if you do your research carefully, and buy your new car from the right dealers.
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