Car Loans and Bad Credit -- Three Pointers for Getting Approved

If it seems that getting a car loan is out of your reach because you have a bad credit history, here are three pointers to keep in mind as you begin your search for an auto loan. Because, you can get that loan. One – Know your credit score and use it to your advantage. Two – Search for a lender who specializes in bad credit car loans. Three – Do not let lenders foist lousy interest rates on you just because they feel they can, due to your poor credit report. Be confident.Your Credit ScoreOf course, your credit score will directly affect getting a car loan. That does not mean that getting one is that difficult. You need to know what your credit score is by getting it from any of the three credit reporting agencies. You can find them online and the cost for the reports is minimal. (In your browser punch in TransUnion, Experian, or Equifax.) You need this so you will know exactly where you stand when you approach a lender. Maybe your credit is not so bad, maybe it is awful. At least you will know so no one can delude you to your disadvantage.Your Auto Loan LenderFace it, the worse your credit score, the more likely you will be turned down by traditional lending institutions such as banks or credit unions. They get a high volume of business and can afford to be picky about to whom they lend. You might try one of the more traditional venues, but if you have any doubts, you should probably concentrate on those who specialize in bad credit auto loans. These establishments can be found online, making it easy for you to shop around for the best value for your money.Your Interest RateGetting an auto loan with a poor credit history is not impossible – getting a good interest rate is unlikely, though. The worse your credit history, the higher cost your loan will be. This does not mean you should agree to whatever interest rate a particular lender throws your way. It pays to shop around. Some lenders will try to take advantage of your credit situation and sucker you into higher interest rates. Be on the qui vive for this type of behavior.Bring It All TogetherWith the pointers above, you can place yourself at an advantage when you apply for your bad credit auto loan. Find the right lender, borrow at an acceptable interest rate, know where you stand, be confident, and you will feel better about yourself and your auto loan. Another good aspect of taking an auto loan, even if the rates are high, is that you will be given the opportunity to rectify you poor credit history by making your payments on time for the amount due, and maybe a little extra if you can. And, at least the feeling of some success will be yours in spite of your poor credit history. Even with your past financial mistakes, you do deserve a good set of wheels and you do not deserve to be taken advantage of.