How Do I Get a Car With Really Bad Credit?
Buying a car with bad credit is not impossible. Whether you have bad credit, no credit or even a bankruptcy, there are options available to help you buy a car. With bad credit, your payment and interest rate can vary based on the severity of your credit problems, the down payment amount and the degree of credit risk.
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Instructions
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Get a free copy of your credit report and review for any discrepancies. If you find any, contact the credit reporting agency to dispute the problems. You can obtain a free annual report from annualcreditreport.com.
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Repair your credit as much as possible before trying to buy a car. If you have small charge-offs you can pay, do that first. Use any old credit cards you may have and pay off the balances quickly. This helps improve your credit history.
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Stay on your job for at least a year. The longer you have a job, the better it looks to a lender. It shows you have the means to repay an auto loan.
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Search online for auto loans for borrowers with bad credit. Several sites will be available, but only use a lender or broker legitimately registered with the Better Business Bureau.
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Apply for a loan though an auto loan broker. This company has access to various loans and lenders willing to work with you. Expect to pay a high interest rate. Also, you will be required to make a down payment or offer collateral.
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Visit a lot that offers on-site financing. A "buy here, pay here" lot will require a down payment, but will not run a credit check. When completing an application, you may be required to provide references such as a rental history.
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Check your newspaper's classified ads for a car "for sale by owner." Ask the person to consider financing for you.
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Tips & Warnings
You must be 18 to apply for an auto loan.
Obtain a co-signer, if possible.
References
Resources
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