Most people need cars to get around their city. But if you’re stuck with bad credit, you might be thinking to yourself that your dream car will likely stay a dream, and you will be stuck walking the 2km to work every day for the rest of your life.
Get a loan for a car
Luckily, you don’t have to bore holes in your shoes much longer. Because if you think your credit score is terrible, then you’re most likely eligible for a bad credit car loan.
Right now, you’re probably thinking “that’s not a thing, and there’s probably a lot of red tape to go through just to get approved for a bad credit car loan”. But don’t fret, and let this be your guide on how you can get a car loan even if you have terrible credit:
Check your credit report. Never assume anything. If you just think that your credit score is awful, there is no guarantee that it is. Talk to your bank or use a free web service to find out just how bad your score is. The chances are that it isn’t that bad. In case your credit is as bad as you thought it was, then maybe it is time to consider getting some financial help to get you that car.
Shop Around. Don’t settle for the first company that offers to give car finance because of your not-so-great credit history. They can be preying on you and can sink you lower in the red than you already are. The best way to battle this is to shop around and find out everything you can about each lender. That is an excellent way to weed out the scammers from those who are legitimately there to offer you an affordable car finance.
Don’t be afraid to ask for help.When going to meet with the lenders, ask someone close to you to come as your back up. They can act as a lawyer, taking in everything the lenders are saying and giving their opinion of it to you. This way, they can pick up any red flags you might miss and can make sure that you are getting the best deal.
Focus on Loan terms, not payments. It’s hard to pass up a deal when it says: ‘pay a lower monthly fee for a longer period’. Don’t be fooled by the low payments every month. Instead, focus on the lowest annual percentage rate over the shortest period. If the only way for you to acquire the vehicle is to get a long-term loan, then it’s probably not the right time for you to make this financial decision.
Check the add-ons. When you’ve chosen a lender, be mindful of the add-ons they will offer. You can cut back on your payments by avoiding unnecessary add-ons such as extended warranties, after-market services and additional insurance. If you will be availing of these add-ons, it’s best to talk about it thoroughly and then weigh your options: is it a must to have? Can I live without it? It’s a lot like shopping in the mall. Don’t give in to enticing promises that will only weigh you down on the long run.
Get ready to say goodbye to your old worn out shoes, and walking to work every day. Because once you’ve been approved to get your car loan, then you’re all set to drive the roads you once had to stroll. Think of this as your second chance, and do your best not to break the agreement. If you can do that, then congratulations on your new vehicle!