One Proven Technique For Getting Car Loans For Bad Credit
If you want to get a car loan and you don not have the credit rating you need to get a great deal
, this technique may be able to help you. You will pay a little more at first, but you will get to drive off the lot with your dream car and reduce your payments drastically a year down the line.
Step One: Getting Your Car Loan
If you have bad credit, getting your car loan is possible, but it can be tough. Usually you will be offered a 24 month loan with a high interest rate, often times with a request for a large down payment.
Remember that you can negotiate any of the terms that are presented. In fact, when a dealership first offers you a set of numbers, they don nott really expect you to take it. They expect you to come back with a counter offer.
That is why they generally over-price the first offer, since they expect to have to come down. That is true of the interest rate, the down payments and the purchase price!
Negotiate until you have a car loan that both sides feel good about. Then proceed to step 2.
Step Two: Paying Off Your Loan
Once you have gotten to the point where your monthly payments are as low as possible, then begin paying off your loan every month.
Make sure that you are not only on time, but a few days early with each and every payment.
This goes a long way towards improving your credit. Not just your credit report, but the fact that you are paying back this particular loan will make lenders much more likely to be willing to refinance this particular loan, so you have shown a proven track record of making payments.
Which brings us to step 3
Step Three: Refinancing Your Loan
After 6 to 12 months of paying off your loan, go get your loan refinanced.
Do not take it into the dealership you bought your car from, since they will charge you up the wazoo for a loan.
Instead, the best way to get a loan refinanced is to buy a few different newspapers and look for bank ads. Banks that are actively advertising in newspapers are looking to lend out money.
Instead of going to the bank to "beg" for your money, you are essentially checking to see which banks want to give away their money. After all, if it sits in their bank account, they are losing 6% a year to inflation. They need to lend out their money to be profitable.
Now visit these banks and make your case for getting refinanced. Tell them that even though you had poor credit, you got the loan and are now paying it off every month. Tell them you want to get it refinanced. Most of the time, you will get it.
You now have a low interest loan on a car you love. Congratulation!
by: Irsan Komarga
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