Are you looking for bad credit car loans? Of course, options are aplenty, but not all of them are safe and worth exploring. Payday loan financiers, for example, do not bother about credit situations but charge a very high rate of interest –sometimes as much as 17 –to 19%. If you are looking for car loans for bad credit, here are 4 tips to remember:
1. Check your credit scores before you apply for car loans:
It is easy to assume you may have a bad credit if you’re behind schedule on a few payments or even declared bankruptcy. But there are several factors that are at work, and you may not know how exactly a financial situation is likely to affect your credit.
2. Shop around:
As we earlier said, there are several options. For example, credit unions are willing to offer auto loans for bad credit, but it’s tough to find a union whose terms match your credit situation. High interest rates can be a deterrent for people opting for car loans from financial institutions. It’s best to stick to safe alternatives like us when you are looking for bad credit car loans on friendly payment terms and low interest rates.
3. There’s more to a good bargain than the price of the car:
Buying a car at less than half the original price may seem a good deal, but there’s more to the deal than the price. What is the repayment duration? If it’s too short, your monthly budget is sure to go for a toss. But if it’s too long, you may end up paying more than the actual cost of the car. Look for the terms of the repayment and the interest rates. Does the dealer offer cashback deals for preapproved loans? We do! And do they offer discounts for students or those who’re new to the country? We do!
4. Is the dealer committed to providing good service?
It is not uncommon for dealers to promise the moon and stars only to later backtrack and tell you that the monthly payments are actually higher than earlier promised. Or, that you may have to pay a higher down payment! And the worst is when dealers delay your request for weeks, only to tell you later that you don’t qualify.