"Credit Cars"
Looking into buying a credit car when you have poor credit can leave you open to many dealer and financing scams. Purchasing a car with bad credit is going to take some time and energy unless you wish to decrease your credit score further.
Step 1 : Get your credit report
You do not want to go into the financing stage of your car purchase with everyone knowing more about your credit than you do. Get your report and review it. Look into removing any bad credit marks by writing letters to the credit companies yourself or hiring a credit repair company to do the work for you. You will do better with financing with a higher credit score. This will be worth the work. If your credit score is above 680, you are a "prime borrower" and will be able to get a good APR on your loan. If your credit score is below 680, you are "sub prime", and will pay a much higher APR on your loan. Below 550 you will either not be able to get a loan or pay up to 23% APR on your auto loan.
Step 2: Research Your Car
Check out all the websites that give information about your perspective automobile. Know what the additional packages are and their costs. Print this information out and bring it to the dealer with you. You want to have something to refer to. Know what you are willing to pay for your car before you walk in the door. Do not figure this out by monthly payment know the total amount you want to pay for the car.
Step 3: Financing
Look into financing before you go into the dealer. Know the going interest rates. Your credit score WILL affect your interest rates so refer to step 1. Many banks and credit unions offer pre-approved auto loans. This is a great way to keep a cap on the price you are willing to pay for an automobile. A pre-approved loan also takes your monthly payment out of the dealer’s hand.
Step 4: Get to know your dealer
Know about the dealer’s invoice. Question any fees that you are unsure of. Questions fees such as advertising and VIN number inscribing these are fees that the dealer is just trying to save out of his own pocket. Tell them you are unwilling to pay those fees.
Stick to the value of the car you have researched. Do not allow them to talk you into extra packages or items you have not researched. Keep all of your research with you and review it when the salesman refers to terms and packages that you may be unsure of.
If you do consider purchasing the automobile at the time ask the salesman to give you 20 minutes to go over the invoice, terms and packages. You want this time to go over all of your information.
Step 5: The Purchase
You will be signing a lot of paperwork. Review each page and know what you are signing. Do not agree to add on packages or warranties at this time. Discuss all of these options before your final purchase decision. Review the invoice again. Look at your final purchase price and question any changes that you might see.
Step 6: Paying your loan
Pay your loan on time. Your auto loan can help improve your credit score if you are faithful to it. And remember, enjoy your credit car; it'll be yours soon!
