Almost anybody can get financing to buy a used car. It sounds silly on the surface, but it’s true. Everyone has seen the ads that tell you “No Credit is Okay” and “Auto Loans even if you have Bad Credit.” They go on and on. What they are telling you is that you can buy a car even if you have no money. They will lend you the money to buy the used car of your dreams. It isn’t a dream though just ask the specialists at Mr Ed of Pheonix.
If you have a bank account or are a member of a credit union, you should go there first. Talk to the finance officer and she or he will tell you if they can lend you money for a used car. Many times, credit unions will give you the lowest interest rate and if you are a member in good standing, you can get a pretty good loan.
If you have bad credit and need a used car, you should perhaps go to a reputable dealer first. Pick the car out that you want and then go talk to the finance department. They’ll ask for some personal information such as driver license and social security number and then they’ll run a credit check in the computer. This is standard practice, so don’t take it personal. They do it to everyone. They will tell you within a few minutes if you qualify for one of their finance programs.
You will generally qualify for something but depending on how bad your credit record is, the interest rate can be sky high. They will take into consideration your current credit score, whether you’ve defaulted on a loan previously and how long you have been at your present job. These are all very important factors in determining whether you get a loan and how high the interest rate will be.
When you do get your loan, you may have to prove that you have car insurance. In most states this is the law, so don’t forget to calculate that cost into your used car budget. Without insurance, most dealers won’t let you drive off the lot.
Whether you have bad or good credit, making the payments on time each month will build your credit score. This can only help you when you request loans in the future. Late payments on any loan will cost you a late charge and it will hurt your credit rating.
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