You Can Obtain a Car Loan Even with Bad Credit
Even with bad credit, you have a number of options to obtain a car loan. Collateral, personal relationships, even online lenders can all offer you strategies for getting behind the wheel.
The financial troubles facing the world are … well … global. Many folks are facing financial difficulties. Some folks have lost jobs, some have taken salary cuts, bills from utilities to groceries are being driven up by inflation. Confronted with these difficulties, some may have fallen behind on their monthly obligations and have therefore put some smudges on their credit reports.
You Still Gotta Drive
No matter what kind of credit you have bad, good, or no unless you live in an urban area, you still have to get around by car. Getting to work, getting the kids to school, doing the shopping, and a myriad other tasks require the use of wheels. Nowadays, lenders have put the kibosh on a lot of lending, even for those with excellent credit. If you do have bad credit, you have to be very careful as you figure out a way to finance your car. But never believe that you cannot obtain a car loan, even with bad credit.
Home Equity Strategy to Obtain a Car Loan
Of course, having some collateral will help you keep your interest rates low, even if you do have bad credit. If you can, securing your car with a home equity loan will help you steer clear of near-loan-shark rates offered by bad credit lenders. Also, home equity interest is tax deductible. So, you will get a blessing at tax time and since your car is secured by the home, your interest rates and payments will remain constant.
Personal Banking Strategy to Obtain a Car Loan
If you have been doing business with a local bank or credit union for some time, and your accounts have always been in good standing, you may want to approach a loan officer there. Even though you may have declared bankruptcy or run into other financial problems, they could be willing to offer you some sort of loan to get you back in the driving seat just because you have been a steady customer over the years.
Online Lender Strategy to Obtain a Car Loan
If neither of the above pan out, take a leap and go online. Punch bad credit car loan into your browser and you will be rewarded with a plethora of lenders willing to help you out. Some sites are even comparison guides, giving you bids from a number of vendors very quickly.
Security Is the Key
Remember, a website can disappear a lot more quickly than a brick and mortar financial institution. Make sure your lender is reputable. Many folks become the victim of adjustable rate loans, changing payment terms, and other weasel factors that could only lead you to damage your credit further. Of course, there are a lot of online lenders ready to offer you fair rates and are credible lending resources.
Do Not Walk Into the Dealership Lair
Walk into a dealership plastered with glitzy signs offering you the world and you have taken the bait and have been lured into a spider web that could leave you sucked dry financially. They will convince you that they are doing you a big favor, offer you a car of dubious background, or even title, and you could find yourself in a worse situation than just having bad credit. If you are careful, you can obtain a decent car loan even with bad credit.