Car Loans: Bad Credit Car Loan

Worried that your less-than-perfect credit is going to keep you from buying the car you want? Don't be.
Chances are you will be able to land an auto loan. Today, banks, credit unions and finance companies are all making loans to people with even bad credit. Many people who wouldn't qualify for an auto loan five years ago can get one now.
"They've loosened credit standards to the point that anyone can get a car," says Art Spinella, president of CNW Marketing Research in Bandon, Ore. "It's banks. It's finance companies. It's everybody."
Work to save money: How good a deal you get will depend on how many bumps you have on your credit and how much work you're willing to do before setting foot in an auto dealership.
Remember, dealers want everyone to buy their cars, and that includes folks with dinged or damaged credit. So in addition to offering financing from a manufacturer's finance company, such as GMAC and Ford Credit, they also have financing deals with banks, credit unions and finance companies. You may not get the best rate out there, but they'll get you in a car.
But also remember, dealers take a cut of all financing deals they land. So a loan from ABC Bank through the dealer may have a higher interest rate than the loan you'd get if you applied to ABC Bank on your own.
Interest rates on loans for folks with bad credit range from 10 percent to more than 20 percent. The key to landing a better rate is to shop around.
Check credit report for mistakes: Before you start comparing rates, be sure to get a copy of your credit report. Check to see that all information is accurate and up-to-date. The last thing you need is to get bumped up to a higher rate because of an error.
When shopping for auto loans, be sure to swing by your bank or credit union.

For Your Free Auto Loans Guide, Visit http://www.CarAndAutoLoans.com.

Feel free to reprint this article as long as you link back to this article's URL: