Know your credit score. Before you begin the shopping process,check your credit score.
Save for a down payment. If you have a lower credit score,making a down payment on a car can increase your chances of securing and getting approved for
Research,research,research. Prepare as much as possible so you’re not caught off guard when the time comes to negotiate.
Shop around. Once you begin the shopping process,don’t limit yourself to just one lender.
Prequalify with lenders. Prequalification allows you to see if you’ll qualify for a loan before you apply.
Be sure the terms are final. If you finance through a dealer,always make sure the terms are final before you sign.
Avoid subprime lenders. Subprime lenders can seem like a sure bet to anyone wondering how to get a car loan with bad credit.
Shop loan terms,not monthly payments. Lower monthly payments look good on paper and are usually used to entice buyers.
Bring a friend with you – and consider a co-signer. Ask a friend or a relative to go with you,says Massachusetts-based consumer attorney Yvonne Rosmarin.
Look out for add-ons and scams. Nonprime buyers are more likely to encounter lending contracts with nonessential goods and services,says Josh Frank,former senior researcher for the Center
What is a bad credit score for an auto loan?
The credit score needed for an auto loan varies with each lender. However, a credit score in the range of 500 to 579 is generally considered bad credit because 500 is the average minimum credit score for an auto loan.
What does auto loan approval mean?
Pre-approved Auto Loans. A pre-approved loan can also be a loan that a lender issues to a borrower before an auto is purchased. These loans are usually valid for a limited time only, such as 30 days from the loan approval date.
What is guaranteed auto financing?
Guaranteed auto financing does exist. This type of loan is almost always offered by in-house financing dealerships that don’t rely on checking your credit in order to approve you for an auto loan. Instead, these types of dealers use your income to determine if you can afford a car payment. Guaranteed car loans…
