3 Ways to Make the Best of a Bad Credit Car Loan

May 22nd, 2015 by

Just because you have bad credit doesn’t mean you should suffer when it comes time to purchase a vehicle. If you take the right steps, you should be able to find a car that suits your every need, regardless of your credit score and history.

There is a lot you need to know about car loans for bad credit. For example, some dealers are more likely to work with you than others. Here are three ways to make the best of this type of loan:

  1. Buy a used vehicle priced at $10,000 or less. It’s easy to believe that vehicles in this price range have nothing to offer, but once you look around you will find that there are plenty of options to consider. Vehicles in this price range are easier to finance, regardless of your credit score.
  2. Put down a minimum of 30 percent. The more money you put down the less risk the lender is taking. If you have 30 percent for a down payment you greatly increase your chance of approval (and a lower rate).
  3. Make double payments when possible. It is not always easy to pay more than the minimum, but don’t shy away from this. Even if you only make a double payment once or twice a year, it will go a long way in quickly reducing your balance.

Before you begin your search for a vehicle, don’t hesitate to learn more about your credit score. If you think you will require a bad credit car loan, it isn’t the end of the world. There are dealers willing to help you out. Furthermore, you can make the process less stressful on yourself by following the three tips above.

All in all, bad credit doesn’t put an end to your life. It may change the way you shop for a car, but the opportunity to make a purchase still exists.