Shopping For Auto Financing With No Credit.
February 27, 2010 by Frank Falcone
Filed under Debt Consolidation
What To Do Before You Visit A Auto Dealer When In Need Of A Car Loan After Bankruptcy!
If your looking for a good used auto, just finding a reliable car can be a challenge in itself. Now if you are looking to finance a car with bad or no credit, on top of finding something reliable, now that sometimes can be a real challenge! Finding a good deal at a local auto dealership is not so hard to do. It’s finding a car lot that will not try and pull a fast one on you and add in other aftermarket products and services that will wind up costing you a lot more cash in the long run, that you should also be careful about!
Having poor or a repossession can be a extremely discouraging when your dealer comes back to you with an extremely high interest rate on your auto loan. It sort of makes you believe that there is no way you can get a good deal on auto financing if you have poor credit.
The bottom line is that used car dealerships want and need your business. If you feel like you are not getting a fantastic deal, you have the power to walk away and continue your car shopping journey elsewhere! In this article I will give you some tips on what to do to prepare yourself for bargaining and getting a great deal on car credit online.
The most important thing to get before you shop is “Credit FICO Score”. You need this in order to receive an idea of where you stand and how damaged your credit really is. Most of the times people go about the whole buying process backwards. They go to a dealership, find a clean vehicle that they like and then the salesman comes back with an auto loan approval only to tell you that you barely qualified for this car because of your poor credit history and credit score. They may just be trying to charge you a higher interest rate and in turn make a few thousand dollars extra on your deal, than if you already knew what your credit history looked like. a 1 to 5% increase in your interest rate can mean as much as $3000 more in interest payments coming out of your pocket over the life of the loan! This is obviously something you don’t want happening.
First, do a search on Yahoo for free credit reports with credit scores. You are going to need to arm yourself with an accurate credit score from all three major credit bureaus: Experian, Equifax and Trans-Union. You are actually eligible for a for a free credit report every year, so take advantage of that so you can get the best deal possible on your car financing.
Lenders use the FICO score as one of the single most important factors for determining credit strength. Credit scores usually range from 390 to 900 with anything over 699 being considered as good credit. If you walk into a auto dealer saying you have limited credit and they run your report and find out that you have a 680 FICO score, the dealer may consider offering you a higher interest rate simply because you thought your credit history was extremely poor, when in reality it was better than you expected. You must remember that car dealerships have to make a certain amount of cash on every vehicle they sell because they have a big overhead. So it is expected that they try and charge you more when they can. That is just how this kind of business works. But I am a true believer that a deal has to be fair for the dealership as well as the customer. I feel that no person should be taken advantage of!
Its never been easier to find an easy car loan on the internet. These days all you have to do is search for auto financing with bankruptcy and within seconds you will find Top websites like DrCarLoan.com.