Already on ArticleSlash?

Forgot your password? Sign Up

Plan Before Applying for Bad Credit Auto Loan


Visitors: 139

Most people who apply for auto loans do not take sufficient time to plan the entire loan and repayment process. This leads to delayed payments, high interest rates and/ or high processing fees. And in the end owning a car can end up being a more expensive proposition than they bargained for. This fact is especially true for people with bad credit history and that is why you should always plan before applying for bad credit auto loan.

Planning before Applying for Bad Credit Auto Loan

Review your credit score: If you have defaulted on payments in the past, you know that you have a bad credit. However, it makes sense to review your credit score before applying for a bad credit auto loan. It is quite possible that your credit report might contain errors previously unnoticed by you and even a small improvement in your credit report would go a long way in helping you get better interest rates when applying for a bad credit auto loan.

You can easily get a credit report from one the three credit bureaus in the country and you are entitled to three free credit reports a year. Once you get your credit report, sit down and go through it carefully.

Create Credit Worthiness: Before applying for a loan make sure you start making all your payments on time. This will create an impression in the eyes of the lender that you are working towards eliminating your bad credit history. This process should start at least 6 months prior to applying for a bad credit auto loan.

Once you create some sort of credit worthiness, you will be able to get better interest rate and fewer of loan applications would be rejected.

Get Multiple Quotes for Bad Credit Auto Loan: Do not take up the offer made by the first lender. Get quotes for 4 to 5 different lenders and compare rates and terms of repayment. This will also give you a feel of different lenders. Although there might be just slight difference in the rates, service from lender to lender differs.

Check Out More Articles :

Guaranteed Personal Loans Of Bad Credit , How Can A Catholic Get Out Of Debt , Mortgage Loan Refinancing In Britain


Article Source:

Rate this Article: 
Auto Loan For Bad Credit to Buy a Used Car
Rated 4 / 5
based on 5 votes

Related Articles:

Instant Auto Loans - Buy a Car Instantly by Applying For This Loan

by: Kalvin Jason (September 25, 2008) 
(Finance/Auto Loans)

4 Easy Steps to Applying For Bad Credit Auto Loans

by: Ronnie Taggy (September 18, 2008) 
(Finance/Auto Loans)

Applying For a Bad Credit Car Loan

by: Alisha Delphi (September 25, 2008) 
(Finance/Auto Loans)

Applying for a Bad Credit Bank Loan

by: Jerry Warner (April 29, 2008) 

Applying for an Adverse Credit Homeowner Loan

by: Bill Stone (April 27, 2008) 
(Finance/Mortgage Refinance)

Car Loan Guaranteed Approval : Find Best Auto Loan With No Credit History ..

by: Lowell Riggs (May 22, 2015) 
(Finance/Auto Loans)

Bad Credit Auto Loan - Bad Credit Is No More A Constraint For Buying A Car

by: Ashwell M (June 26, 2007) 

Auto Loans With Bad Credit How to Secure That Loan With Bad Credit

by: Bob Simmins (September 01, 2008) 
(Finance/Auto Loans)

Bad Credit Solution Auto Loan For Bad Credit

by: Neil Bradley (June 27, 2008) 
(Finance/Auto Loans)

Auto Loan For Bad Credit to Buy a Used Car

by: Neil Bradley (June 21, 2008) 
(Finance/Auto Loans)