How to Buy a Car When You Have Bad Credit
Your Credit Report
Time on the Job
Seeking a Loan
Start with your local bank or credit union. Things may not be as bad as you believe. If your bank denies the loan, then find out why. Qualifying for a cheap loan may be as simple as paying a forgotten medical bill.
There are dealerships who hope to provide bad credit financing. Some of them charge a reasonable interest rate. Occasionally, a dealership works with an institution that they own. In this case, the dealer has a lot of influence over the loan decision.
In-house bad credit financing is when the loan is handled from application to payoff at the dealership. Many companies offer flexible terms, such as weekly or biweekly payments.
Keep an Open Mind
When you invest money, your highest earnings come from the higher risk investments. The same is true for lenders. As a borrower, you are an investment. Your credit situation determines the level of risk a lender assumes upon making you a loan. It is only temporary. Try to find a good deal before settling for a high interest rate. If you find it impossible, then face the situation and start building your credit back up by taking a loan from someone.
There are businesses out there that are willing to help customers who have bad credit. Find out where you stand and do your homework. Borrow from someone who reports customer credit so that you can improve your situation before the next time.