4 Mistakes People With Bad Credit Make When Choosing Auto LoansNov 22nd, 2016
A bad or no credit situation needn’t be a cause for gloom. People with zero and poor credit scores can still apply for auto loans without having to pay scary interest rates. But people too often make mistakes when buying a car. Some of them include:
Not knowing your credit score:
The federal law allows you to request a free credit report from any of the national credit rating companies once every year. Too many people do not do so, often assuming their scores to be bad. Before you apply for car loans in Nova Scotia we suggest that you know your credit score. Also, remember to pay off your dues if any so that it does not negatively affect credit score.
Not exploring other options:
There are several lenders willing to offer car loans for people with zero and no credit. And not all of them charge high interest rates; some are as low as 2.5 % per annum. You will have to shop around looking for those offering easy lending terms. Some, like us, offer cashback schemes wherein you get up to $5000 cash back on approved loans. In some cases, it is easier to get an auto loan than a personal loan.
A leather upholstery, window tinting, and the latest CD stereo may seem tempting, but they can wait until your credit score improves. It is surprisingly to see how some of these apparently inexpensive add-ons can add up to the final cost. Besides, some of these upgrades can backfire and affect your car’s resale value.
Opting for a long term loan:
Long term loans may seem easy on the monthly budget, but you may end up paying more than the car is actually worth because of depreciation. You may also end up paying more interest rate just to have lower monthly payments.
A bad or zero credit situation isn’t ideal, but it is definitely not the end of the road. There are several options to explore before finding the best car loans for bad credit.