How to buy a car if you have bad credit in Newburgh, NY

How to buy a car if you have bad credit in Newburgh

, NY

When buying a car it is important you know a car lenders credit guidelines before you apply for credit if you want to get approved at the best possible terms. This is applicable if you have low credit scores. Many experts say and it is true that if you have bad credit do not buy a new car right now.

You can improve your credit score enormously and quickly the first month using strategies you can read online. After your debt balances are lower and your credit score is above 600, and you have 20% to put down it is the best time you can buy your car. Cars typically depreciate about 20% the first year. This is the reason you need 20% down payment, if you avail 0%, you'll be 20% overturned after the first year. That is why you are in big trouble in the first place if you bought the car you have now with no money down.

It is better to buy car after cleaning up your finances

Most lenders will only approve you if you have a previous auto loan in your credit history. If your credit is awful, it is better to buy a car after you cleanup your finances. Sometimes people with actually bad credit cannot see the fact that if your situation is not good, you do not have a choice on cars brands. They tend to forget that buying a car is not a God given right but a privilege.

How to get bad credit auto loans

Remember these tips when you really want to buy a car; Find out a lenders credit guidelines and start asking if they lend to people with a bad credit. You must be upfront that you have filed bankruptcy and do not hide this fact. Acquire your FICO credit scores. The dealer will know you are a more informed consumer when you enter a dealership with your FICO scores and you cannot be taken advantage of.

Talk to the remaining car dealers and start by asking them these questions:

* To make a lending decision which credit reporting agency do you use?

* To get approved what is your minimum credit score requirement?

* To get the best interest rate what credit score is needed?

* To a bankrupt debtor do your lenders prefer offering lease or purchase financing?

* What enticements are there to purchase right now?

You must avoid financing extended warranties and other extras into high APR loans

Many people make this mistake. Forget about adding items like Warranties and insurance etc. into your loan if you know you are paying 18% APR, why pay 18% on those items too? You can buy them any time, direct and without middleman car dealer markups, and no 18% APR.

If you are just recovering from bankruptcy or bad credit, the most important thing is if you can get approved at an interest rate you can afford from a lender that reports to all three national credit reporting agencies. One thing to consider is you should only go for lenders that are bankruptcy friendly.

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