Lenders offering bad credit car loans are all over the place. The problem is that many of these businesses tend to be less than trustworthy. Their terms are often predatory and can ruin your car ownership experience.
If you’re looking for a car loan and your credit is less than stellar, we recommend you take these initial steps to find a loan that works best for you.
First Things First
You need to make sure you know your credit score. Don’t assume your score simply because you think your credit is “bad”. By knowing your score you’ll be able to use online tools to get an idea of the type of loan terms to expect when you do start shopping around.
Don’t Be Afraid To Shop
Be sure to shop around for terms that are good for you. Even with a low credit score, some places will will be able to offer you better rates than others. However, you should be leery of lenders who only work with individuals with poor credit as that can be a sign of predatory practices.
Use Existing Relationships
It’s easy to sit in the comfort of your home and fill out applications online at various lenders. However, it’s best to start with local organizations that you have a relationship with as they may be more willing to offer you better rates.
Work With Your Dealership
Dealerships usually have relationships with lenders who work with individuals with poor credit. While many people prefer to use a third-party lender, we may be able to work with you to get you the right financing based on your budget and payment goals.
As you look for your next loan, the most important thing you can do is start your search early and be as thorough as possible. Bad credit doesn’t have to be what keeps you from getting your new car.