subject: Getting A Bad Credit Auto Loan From A Credit Union [print this page] Bad credit was considered a major problem in getting car loans. But, not anymore! It can be easily tackled with the help of bad credit auto loans. There are millions of Americans who have a bad credit score and they still buy cars. If you want to get an auto loan with bad credit, heres how you can do it.
A Credit Union Can Help You
You can avail bad credit car loans from a credit union for lower rates. A credit union is a cooperative financial institution owned and controlled by its members. Its business is to provide financial services and credit to its members.
While banks usually follow stringent lending criteria and are unenthusiastic about providing bad credit auto loans, credit unions are a ray of hope for bad credit borrowers. They offer poor credit car loans at low rates and longer loan terms. Other financial institutions work with a motive of earning higher profits whereas credit unions serve their members by offering bad credit auto loans at reasonable rates.
Many people now choose a credit union for getting auto loans with bad credit because of their lower interest rates and discounts. To avail a car loan from a credit union, you must be its member.
Negotiation Is Important
It is essential that you negotiate with your lenders. Even though a credit union is offering you lower interest rates, it is important that you negotiate. You must convince them that you are a low risk borrower. Write a letter to them explaining your bad credit score. It will help them in understanding your situation in a better way.
Before Signing the Bad Credit Car Loan Contract
Even if a credit union is offering you a bad credit auto loan, you must look beyond attractive offers and do a proper research. Make sure that you do not exceed your budget. Ensure that the payment terms suit you. If your bad credit car loan payments are unaffordable, it can actually bring down your credit score and this could be a very risky situation.
It is important that you understand all the clauses in your car loan contract. If you miss out on any factor, it may cause a problem in future. So, do a comprehensive analysis before signing on the dotted line.
You can easily get a bad credit auto loan from a credit union. Just follow these simple yet effective steps and you will soon be driving your dream car.
by: Alan Hendricks
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