subject: How To Get Car Loans With Low Interest For Bad Credit Individuals - 3 Tips [print this page] How To Get Car Loans With Low Interest For Bad Credit Individuals - 3 Tips
Do you want the secret to qualifying for a car loan even if you have a bad credit score? It is simple: do not do what everybody else does.
You see, just as in any industry, in the auto financing world, the major players bank on the idea that 99% or more of potential customers will just follow the crowd. In terms of qualifying for a loan, that means picking up the phone or going online and contacting just any lender they come across.
Why does this happen? Because, in general, it works pretty well for everyone. And, this method for finding an auto lender works particularly well for those people who have good or excellent credit scores. However, for people who have fair or poor scores (say, below 600 or 550), the system is broken.
No, if you have a bad credit score, you need to take an entirely different approach to getting qualified for an auto loan. If you want to know how to get car loans with low interest for bad credit individuals, here are 3 tips:
1. Explore your credit reports from all 4 major credit bureaus:
Start by getting your story straight about your financial past. If you do not know your own financial history in detail, how can you expect a lender to feel confident that they can make you an auto loan offer? Be sure to pull not just one credit report, but rather pull all 4 reports - one from each major credit bureau. Then, take notes on anything noteworthy and be ready to discuss it if asked.
2. Find 5-10 lenders online who specialize in working with bad credit drivers:
Next - and this is the thing that you will be doing differently than 99% of the other bad credit borrowers out there - you need to seek out specifically those lenders who specialize in bad credit auto loans. The reason for doing so is that these lenders use a completely different method for figuring out how likely borrowers like you are to be a lending risk. Hint: it's not just based on your credit score, like with most lenders. Rather, they go right past that and instead dig into the details of your financial past. (Don't worry, it's not painful).
3. Take notes on the rates featured on their websites before applying to all of them:
Visit the website of each of the 5-10 lenders on your list. Check out their featured auto loan rates. Then, start applying. Do not stop until you have at least 3 offers in your back pocket.
Take these 3 tips into account as you figure out the best way to get car loans with low interest for bad credit individuals.
