Wednesday 28 November 2012

Tips On Getting Bad Credit Auto Loans

By Kari Ratliff


When searching for bad credit auto loans you need to do your homework well. Getting a willing lender can be difficult, but it is not impossible. For starters, you may have to contend with a high rate of interest, but you can improve your scores by making prompt payments. If you have less than perfect scores and you want auto loan, you need to be very aggressive in your search.

At this point, you are aware that your credit rating is not good, but you need to find out how bad it is. This means that you need to check your exact scores. You can order a report from the three agencies which are: Equifax, TransUnion and Experian. By law you are entitled to free reports every year. You need to order directly from their official site since you will get charged if you retrieve this information from commercial sites.

If you choose dealer financing, go for the largest car dealer in your residential area. The advantage of this is that such providers have better deals. Chances of getting bonuses are also higher. Again, they have more variety for you to choose from. You can also get more flexible payment methods since large dealers have the advantage of economies of scale when compared to smaller dealers.

Once the bureau has finished processing any disputes, you can then proceed to apply for an auto loan. Ensure that you get a copy of the new report once the errors have been omitted. The reason why you should know your score is so that you are not exploited by dealers and lenders. In most cases, they will try paint your situation worse than it actually is.

Finding car loans is not impossible; however, you may have to settle for higher rates. You can increase your chances of approval by getting a cosigner. This can be a friend or relative who is willing to cosign and assume liability if you default. They should have a good rating for faster approval

Before approaching a lender it is wise to try and clean up your act. In the months preceding the applications ensure that you do not miss to make any payment. Strive to repay your monthly payments within the time frame stipulated. This should be done at least six months before you begin searching for a credit provider. This is bound to increase the lenders confidence in you and they will be obliged to give you a more favorable rate.

There are certain things you can do to increase your chances of getting an auto loan. To show the lender that you are serious you should save up for a high down payment. This will significantly reduce the amount that you need to borrow. Again, if you make timely payments the credit provider may be willing to knock down the high interest rates.

If your scores are really bad you may get a cosigner who can accept full responsibility in case you default. However, ensure that you make timely payments since defaulting will not only affect you but your cosigner. When looking for providers of bad credit auto loans Portland applicants need to have these points in mind.




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