subject: Auto-Loan: On Bad Credit [print this page] Auto-Loan: On Bad Credit
Although it can be easy to get an auto loan on bad credit, your best option, if you have the time, would be to fix your credit up first as much as you can before trying to get the loan. The average credit score is around 678-720, so if you can get your credit score to around the average credit score, you should be able to get a low interest rate, although perhaps not the very lowest. There are many places on-line where you can check your credit score free of charge, or for around a dollar, depending on the website and options available.
If you still have bad credit when you need to get the loan, be sure to shop around! Shopping around will enable you to at least try to find the best deal under the circumstances. There are many places that advertise loans on bad credit, but the interest rates will be high. You may not be able to get a low interest rate on bad credit, even if you do shop around, but you at least will probably be able to lower your interest rate just by comparing and finding the lender that will give you the best deal you can have on bad credit. Chances are, the dealership will not be the ones giving you the best deal.
When looking at the actual loan, be sure to read the fine print. Be sure, especially if you are paying a high interest rate due to having bad credit, that you will not be penalized if you are somehow able to pay your loan off early, or you are able to make more than the required payments for some of the months to speed up the time it would take you to pay back your loan. Lots of times there are other hidden fees and charges for certain things. Be sure you know what they are.
You will also want to inquire about auto insurance, because lots of times, if you purchase auto insurance, you can get a lower interest rate. Lenders generally feel a lot better knowing you have auto insurance because if you do, and something were to happen, insurance would probably protect you financially, and chances are, you would still be able to pay back the loan. With a lower interest rate, it may even save you money! Plus you would have the peace of mind knowing that if something happened, you have insurance!
See about your options for getting an auto-loan today!
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