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People often think that just because they have bad credit, they will not be able to get a new car loan. So, instead of trying to get a new car, they drive around their rusty old ’82 Chevette and hope it doesn’t fall apart in the process of getting them to work. The thing is, if you ask most of them, they probably never even tried to get a loan for a new car. They have no idea of the options or alternatives in financing a new vehicle (even with bad credit). He never tried to get a new car loan with his bad credit.
Lenders want us to believe that if your credit score is bad, or low, you will not be able to get finance for a new SUV. Really, depending on your income and the cost of the vehicle, you may not want to finance. But, if the price is reasonable, why can’t you get the money for a new car or truck? Well you really can. You can get a loan for a new vehicle even with bad credit.
However, there are a few things you need to keep in mind and be aware of before you start shopping for your loan.
– Know your credit score. Before you approach a lender, you want to know what all three of your credit scores are worth. That way, you won’t be blindsided by a higher interest rate than you thought you would get. Also, it is a good way to know how much work it might take to get a new car loan.
– Know the rates. Do some research with some of the major lenders and find out their rates on new car loans. Don’t be afraid to ask questions. If you end up talking to someone, feel free to ask how much interest rates will go up if you have bad credit.
Around the shop, shop, shop. Oftentimes, lenders who specialize in new vehicle loans for people with bad credit will try to charge you outrageous amounts for the privilege of borrowing their money. Be prepared to be treated like a number and don’t hesitate to look elsewhere if you feel you’re being treated unfairly.
Major financial institutions often have special loan programs for people with bad credit. It’s a good idea to look into these, as you may get a better rate if you go through a smaller lender.
– If you have a vehicle in mind, consider visiting a dealership. Most auto dealerships have their own financing team. If you walk in and tell them your situation, they may be able to get you a loan for your new SUV, even if you have bad credit.
– Use the car loan calculator. There are many sources for these online, and you will get a clear idea of what your interest rates and payments will be.
Before you go anywhere to apply for a new car loan, it’s a good idea to have your last three paycheck stubs and if you’ve been there for a few years, you might even consider showing proof of your last year’s W-2. Can Your employment Don’t forget a valid driver’s license and your social security number.
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