How You Can Get A Bad Credit Auto Loan

Author: Jon Arnold

Article:
You have had some bad breaks and some tough luck, and
unfortunately, this is reflected in your credit report. Maybe
your credit is so bad that an auto dealer might question it even
if you offered cash for the whole deal. But one thing that
people do not realize is that it is entirely possible, even
likely, that you can get an auto loan even if you have bad
credit.

One of the things you need to understand up front is that you
are probably going to end up paying a higher interest rate than
you would if your credit was sterling and shiny. But if your
credit problems are behind you and you are now looking to start
over, an auto loan is a great place to establish your credit,
since it is typically a big ticket item, and payments made on
time will go a long ways towards re-establishing your credit
worthiness.

The financial market has a multitude of lending institutions
that are designed for people with bad credit. Those companies
are probably not the best choice for people with good credit,
since they can get a good deal almost anywhere, but we will not
worry about that for now.

The thing that these lenders are most interested in is whether
or not you have enough income to cover your current bills, and
if so, do you still have enough income to make your payments on
this auto loan. Some of these lenders will require a down
payment that is higher than it would normally be. The thought
process behind this is that you have some of your personal money
invested in the car, and with that being the case, you have even
more incentive to keep up with your payments and not allow the
car to be repossessed.

One of the tricks of the trade is to get pre-approved for an
auto loan prior to even going into the dealership to look
around. If the dealership knows that you are already
pre-approved, you have a significant advantage because you can
now go to ANY dealership to make your purchase if they do not
cut you the best possible deal. When you are shopping for
something like a new car, even bit of advantage you can have is
goodness.

The first place you should consider looking is of course online.
There are many places with trained financial professionals who
represent many different lenders, and their specialty is working
with people who have bad credit. These people know which lenders
are going to be able to offer your best package for a bad credit
auto loan, and will work with your individual and specific
situation to arrange a package.

The bottom is to not give up on your dreams of having a new car
just because you have bad credit. The price you will pay for
your bad credit is a higher interest rate, perhaps a larger down
payment, but you can get approved. After you do get approved for
your bad credit auto loan, be sure to make each and every
payment on time so that this can also serve to re-establish your
credit score.

About the author:
Jon is a computer engineer with a wide variety of skills and
expertise in many areas. To get more information about
Bad Credit Auto Loans,
please visit his web site at
http://www.car-loan-resources.com