The Moral of the Story: All Good Car Loans for People With Bad Credit Come to Those Who Shop Around
What does it mean to be stuck with bad credit? For one thing, it doesn't mean that you are locked out of the market for a new car; and for another, it doesn't mean that you have to settle for finance terms that are so lopsided and unfair that you probably have to do without breakfast every other day for three years straight.
So are we saying that loans for people with bad credit are easy to come by? Let's look a little more closely at this.
"Bad credit" happens to be an awfully ambiguous term.
That ambiguity could work in your favor if you could find a lender who was willing to interpret things in your favor.
Where some lenders would not let you in the door, others could be willing to look at your credit history, spot signs of responsible behavior that conservative lenders would not and offer you a car loan on good terms.
The moral of the story then is that good car loans for people with bad credit come to those who shop around.
The first thing you want to do searching for a car loan is to not broadcast that you're desperate and that you will gratefully accept anything you're given.
Let's start at the beginning.
How exactly do you know that you have bad credit? Is it because someone at a car dealership told you? You can't take anyone's word for it - people can be mistaken, careless, or just be lying.
Instead, you could go to a website like MyFico, pay the modest fee they ask for and get your scores from one of the three major credit reporting agencies.
And even if you do have a poor credit score, there is a lot more to how you are judged by a lender than just score itself.
For instance, a 22-year-old who's just started out in life is likely to have a poor credit score that is set back further by the fact that a 22-year-old doesn't have much of a credit history.
If you have the very same credit score at 30, you could get a better deal because you at least have a credit history that a lender can look at.
Perhaps you believe that you are condemned to groveling for car loans for people with bad credit because that's the kind of deal you got with the purchase like house.
But these aren't the same things.
Lenders typically have more stringent requirements when it comes to lending for houses - since houses tend to be harder to repossess than cars.
You'll get unfair terms on a loan if you actually go and apply for loans meant for holders of a poor credit score.
You need to know what exactly you due is.
And finally, when you apply for a loan, don't you right away go to people whose specific business is car loans for people with bad credit.
These are people who don't even want to deal with people who have good credit because that way, they would have to charge less interest.
You want to go to someone who lends to people across the spectrum so that they could offer you a somewhat better deal if you qualify for it.
Don't go to someone who couldn't even offer you a better deal if he wanted to.
So are we saying that loans for people with bad credit are easy to come by? Let's look a little more closely at this.
"Bad credit" happens to be an awfully ambiguous term.
That ambiguity could work in your favor if you could find a lender who was willing to interpret things in your favor.
Where some lenders would not let you in the door, others could be willing to look at your credit history, spot signs of responsible behavior that conservative lenders would not and offer you a car loan on good terms.
The moral of the story then is that good car loans for people with bad credit come to those who shop around.
The first thing you want to do searching for a car loan is to not broadcast that you're desperate and that you will gratefully accept anything you're given.
Let's start at the beginning.
How exactly do you know that you have bad credit? Is it because someone at a car dealership told you? You can't take anyone's word for it - people can be mistaken, careless, or just be lying.
Instead, you could go to a website like MyFico, pay the modest fee they ask for and get your scores from one of the three major credit reporting agencies.
And even if you do have a poor credit score, there is a lot more to how you are judged by a lender than just score itself.
For instance, a 22-year-old who's just started out in life is likely to have a poor credit score that is set back further by the fact that a 22-year-old doesn't have much of a credit history.
If you have the very same credit score at 30, you could get a better deal because you at least have a credit history that a lender can look at.
Perhaps you believe that you are condemned to groveling for car loans for people with bad credit because that's the kind of deal you got with the purchase like house.
But these aren't the same things.
Lenders typically have more stringent requirements when it comes to lending for houses - since houses tend to be harder to repossess than cars.
You'll get unfair terms on a loan if you actually go and apply for loans meant for holders of a poor credit score.
You need to know what exactly you due is.
And finally, when you apply for a loan, don't you right away go to people whose specific business is car loans for people with bad credit.
These are people who don't even want to deal with people who have good credit because that way, they would have to charge less interest.
You want to go to someone who lends to people across the spectrum so that they could offer you a somewhat better deal if you qualify for it.
Don't go to someone who couldn't even offer you a better deal if he wanted to.
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