If you have bad credit, you are certainly not alone. Millions of people struggle with this issue every single day. However, if you are also in the market for a new car, you may have qualms about being able to qualify to buy one. There are five tricks you must know that let you buy a new set of wheels in spite of credit problems.
First of all, it’s important to be realistic about your situation when you set out to buy a new car. If you simply need a vehicle to get from point A to point B, you should face reality and not set your sights too high. You should skip considering that shiny luxury car that catches the eye of everyone and instead focus on something more basic that will run when you need it to.
Check Your Credit Report
Always check your credit report and inspect it for potential errors. You can obtain a free report from the three major credit bureaus. If you do notice any mistakes, immediately report them to the bureau in question and request them to be fixed. You should also bring your credit report to any lenders with whom you are considering to get a car loan. Being open and honest about your credit is the best course of action. Many lenders are even open to working with you to help you secure a loan. Of course, this is also dependent on the reason for your bad credit score.
Shop around and check out a variety of lenders as well as car dealerships. Make sure to do your homework on any you may consider ensuring that they are reputable and won’t take advantage of you. Research the current going rates for both new and used cars based on your credit score and have this information in tow when meeting with lenders and dealerships.
Determine What You Can Afford
When you are dealing with bad credit, you can’t afford a vehicle with all the latest and greatest bells and whistles. Know and determine what you are able to afford once you go car shopping. Set a budget if you don’t already have one and see what you are reasonably able to afford to pay.
Make a Larger Downpayment
Making a larger downpayment toward the vehicle you ultimately choose to buy can really help when you have bad credit. It will ensure you get lower monthly payments even if your interest rate is high due to your credit. This can help with taxes and other fees associated with car payments.
These tricks can help you get a new car even when your credit is less than perfect. Be diligent and you will qualify for that new set of wheels in no time.