Carthority :: Get a Low Interest Rate

Get the Lowest Interest Rate You Can

Now that you understand what you're up against, how can you get a decent interest rate? Here are a few suggestions - some of which you may have already done.

• Check your credit report. Be sure that everything on your report is accurate. If you do find information on your report that is inaccurate, you need to address it right away. Contact the credit bureaus in writing, listing your name and address and clearly detailing the nature of the error.

• Know your credit score. Your score is available online from each of the three credit bureaus. If you've got bad credit, it's helpful to know it before you go further.

• Don't finance through the dealer. This is a big profit center for them, any loan that they're able to get you is likely to wind up being more costly than if you had contacted the lending institution on your own. Ideally, you want to secure your auto loan before setting foot inside the dealership.

• Include Your Own Bank in Your Search - Many banks have entire departments dedicated to providing loans to people with bad credit and they tend to look more favorably upon current customers. Your credit union is also a good place to try.
• Determine how much you want to pay monthly - You should have in mind how much you can comfortably afford for your car, for both a down payment and monthly payments. Never tell this amount to the car dealer - they will use this information to attempt to trick you into a higher overall price. You can use this Car Loan Calculator to help you crunch the numbers for your bad credit car loan. Click "Back" to return to Carthority.
• Prepare your documentation - Whether online or in person at your bank, you may need to provide some proof of employment and income. It's helpful to have access to this documentation, such as pay stubs etc. This will speed up the process of getting your bad credit car loan.
• Remember you CAN help your credit score - When it comes to your credit history - you have control. You can improve your bad credit by paying your bills on time and not overextending yourself when it comes to loans and credit cards. With the proper attention paid to your credit, you could change your credit situation yourself within two to three years. You may have to pay more than you'd like for the auto loan you're about to receive, but in six months to a couple of years you may be able to refinance your loan at a much lower rate.
  

And don't worry, you have a lot of company because most cars sold are sold to those with sub prime financing - credit scores less than 600. Carthority.com has researched different lending companies and has found several that are leaders in the industry - Apply Today. Good Luck!