Next year is a new beginning, which means you can get a fresh start on your finances. I know a lot of people are worried about a bad credit score affecting their ability to get an auto or car loan. But there is a way to help yourself when applying for an auto loan next year. You can get started before the ball drops on 2016, even today!
This is the crucial factor before even considering buying a car with a suspected bad credit score. If you don’t set a budget, a bank or lender isn’t going to look well upon your application. You should figure out with good certainty how much you can afford in auto repayments per month or week, plus your insurance costs on top of that. You should also figure out how much you could afford in gas every week if you’re a heavy commuter.
Check your credit score
Before you look around for bad credit auto loans, you should check “the damage.” There are several credit check providers out there, so choose one that’s right for you. If you know your credit score and it isn’t as bad as you thought, there may be some wiggle room for a more favorable APR.
Help yourself by proving your trustworthiness
If you have documents like paychecks, bank slips and residential documents proving that you are making a real effort at paying down debts and being a good financial citizen, this may convince your auto lender that you are a lower risk. If you can show that you’re paying off or have paid off other debts like student loans or credit card bills, you might be in an even better position.
Save now for sales galore in the new year
If you aren’t too picky about your color or model of car, you can hit up dealer sales that happen in the new year. If you save some money over the Holidays to put down as a deposit, this also helps you qualify for a bad credit auto loan. “No money down” loans are often more expensive over time!
Don’t apply for loans, just browse
Remember; don’t apply for loans because they may affect your credit score. When you are looking for quotes on auto loans, stress to your representative that you don’t want a credit check done until you’re ready.
Honesty is the best policy
Just like mom and dad say, honesty is always the best policy. Be upfront with your lender and they will be more than eager to help!
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