Bad Credit Car Loan Tips for Consumers   by Paul Arnold

in Finance / Loans    (submitted 2011-02-27)

Bad credit can hinder one's car buying power, especially when it comes to financing a car and finding an honest and dependable lender. However, there are some tips that can help if you are facing this situation.

Check out your Local Credit Union

First, check out you local credit unions. Often, you can get a lower interest rate from a credit union than at a bank or other lending company. Look over their financing programs to see if one might fit your needs. Then, check out your credit report. If you have applied for a car loan and it was rejected because of your credit score, you will need to order a copy of your report. Once you have your credit report, look it over for errors, charges that shouldn't be there or other information may be incorrect. If you find an error, send a letter to the bureau that gave you the report. Later, you will get a response and if your needs are corrected, your credit score will be improved quickly and effectively.

Be on the Alert

Also, be alert and avoid predatory car dealers. There are some auto dealers who offer attractive financing and quick and speedy approvals. But, once you have signed the contract and purchase the car, they may tell you that you don't qualify for the low rate and then you may be stuck with a high interest loan. So, to prevent fraud, a loss of money and a bad deal, shop around and compare the deals. Once you have found an honest dealer and feel comfortable about the loan, look further and check out the company's background, conditions and terms. This can be found by calling your local Better Business Bureau or checking them out online. Later, when you feel you have found the right lender, you can proceed with your car buying process.

About the Author

Paul is an online journalist and recovering alcoholic. He is all too familiar with money trouble. If you looking to buy a car and need a bad credit car loan, Paul suggests doing your research before you sign on the dotted line.