Getting a bad credit new car loan can be done in a few days if you will take the time to research your options.
Tips on Getting a Bad Credit New Car Loan
Before getting a bad credit new car loan it is imperative that you comparison shop so that you will receive the lowest new car loan rates available to those with bad credit.
- You might want to consider a guaranteed new car loan. Guaranteed new car loans involve a third party who will guarantee the car dealer that they will make the car payment if you should ever default on the new car loan. If you decide to go this route, make sure that you can afford the monthly payment for the length of the new car loan term. If you should ever default on a guaranteed loan, you run the risk of losing the car and any payments that have been made up to that point.
- Always read the fine print of any contract before signing. Some bad credit new car loans will charge penalties for those that pay the loan off early or eventually choose to refinance the new car loan once their credit score is improved.
- If you agree to let the lender take an automatic withdrawal for the amount of your car payment each month, they might lower your new car loan interest rate. This is not a large amount, but it adds up quickly and it can substantially lower your payment.
- If you have bad credit and need a car loan, be aware that most lenders require at least a 20 percent down payment. Try to make a down payment of at least that much or more. This may lower the new car loan rate and you will have to borrow less money at a high interest rate.
- Be sure to get all of your personal information together before you begin your search for a bad credit new car loan. The information you’ll need includes Social Security Number, monthly income, employer, how long you have worked at your job, whether you have a co-signer for your loan, and whether you rent or own your residence.