The Thrill of the Auto Loan, the Agony of Bad Credit (cont.)
Contributed by Jessie Hart
-Make the lender an offer. It could be an offer to pay slightly higher interest rate for the first few months of payment (with the agreement that if payments are made on time then the lender would bring the interest rate back down). Convincing the lender that you can make payments on time is huge plus.
-Agree to have a minimum amount in a savings account which can be used to cover any missed payments.
-Do your homework. Find out what a reasonable interest rate is. It is the uneducated who end up falling into traps of hidden fees or ridiculous rates. If you are on top of the ball, you can find a deal that works.
Bad Credit and Auto Loans: Before the Dealership
More and more, banks and credit unions are financing customers regardless of their credit standing. People who wouldn't have been able to get auto loans five years ago because of their bad credit are being given another chance.
Professionals advise that if you have a history of bad credit but you are wanting to apply at a bank for an auto loan, the best thing to do is to meet with the banker face to face. Convince him that you can be relied on to make good on your loans. Be prepared and wise; two ingredients that will go far in getting your auto loan.
