People with bad credit often get discouraged when it comes to buying a new or used car. Many people in the finance industry can hesitate to loan money to someone who has a spotty financial past. However, there are ways to get loans and a great deal on a new or used car if your credit isn’t all that great. Below are just some of the few tips and tricks you’ll love to use when looking to buy a car with bad credit.
Clean Your Credit Up A Bit
Before you decide what you buy, you might want to clean your credit up a bit. Credit can be tricky, but mostly manageable in the age of the internet. Do a free credit check. Determine what you can easily pay off on the list of negative items. Small medical bills can often be paid easily and quickly. For bills that are very large, contact the company by mail and ask if you can make a one time low payment or set up a payment plan. Credit reporting on paid off items usually happens within 7 to 10 days, so you can really raise your credit score in no time with a little finesse and effort.
Do The Math
Once you clean up your credit a bit, you should calculate the payments and loan options you have. With the auto loan calculator from Cars.com doing the math is super-easy. You just input the information about the car you want to buy, enter the sales tax and interest rate available, and decide how long you want to make payments. This is a great starting tool to help you decide the price of the car you can afford, and a great way to start talking to a financial institution that can provide you with a loan.
Talk To A Credit Union
Talking to a financial institution shouldn’t be scary. A Credit Union is usually the first line of defense for those with bad credit that need to get an auto loan. You’ll want to take your loan options from the auto loan calculator to show them that you are not only serious, but interested in cleaning up your credit to get into a great car. A Credit Union can also give you advice on bills to pay off next and help you get your finances in better shape.
Explore Car Buying Options
You don’t have to shop cars in a car dealership to get what you want. You can also shop online and at auto shows. Most car dealerships nowadays also advertise their automobile collection online and look for potential leads (learn more here) as well, which means you should be able to find many options to suit your car-buying needs. Auto shows really give you a hands on car shopping experience without the sales person hassle. While online automotive marketplaces can help you make better buying decisions. When you shop a website like Cars.com you can use the multi-car comparison tool to put two cars you like side-by-side and compare on one easy page. You can also read reviews and watch videos designed to give you more information on each car by expert technicians. There are even real reviews by consumers that have owned the car to help you learn what’s awesome and what might not work for you and your family. No matter what your credit, using these tools will really help you get the best deal on a new or used car.