Don't feel bad or embarrassed if you don't qualify for a normal or good credit car loan. It's been a tough several years and there are a lot more people with bad credit applying for loans than you'd think. Nearly 25% of Americans have bad or poor credit so you are not alone at all. Thanks to this fact, there are quite a lot of different companies that will give you an auto loan no matter how bad your credit is. Getting a subprime auto loan is no longer the huge problem it used to be.
Before you go around randomly applying for car loans, you should sit down and think things through first. Review your credit history and see if you can make it any better. You should actually check your credit report at least once a year for any reports that aren't yours or are not correct. Those would lower your credit score and raise your loan percentage rate. So it's worth your time to check out your credit report. You can get a free credit report once a year thanks to the Fair and Accurate Credit Transactions Act.
Next it's time to figure out how much you can afford to pay monthly on an auto loan. What do you have for a down payment? If you're not sure what a monthly payment for a certain car would be, use a car loan payment calculator on the Internet to help you determine that number. There are tons of them out there and it seems every car dealership site has one.
Before you go driving to the used car dealerships, get your information in place that you'll need to actually fill out a car loan. Have your latest paystub from your job and proof of any other monthly income. Many car dealership websites allow you to apply online so you don't even have to sit and fill out a form in front of someone. I think it makes applying for a car loan much easier because you don't have someone staring at you while you fill out a bad credit car loan form.
After you get your car loan and have the car you wanted, the final thing to do is to start getting your credit back on track. With good credit you won't have to pay the high interest rates for loans. Pay your credit and loan payments on time. Don't apply for every credit card that comes through the mail. As a matter of fact, don't apply for one at all.
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