Wednesday, March 21, 2007
Bad Credit Used Car Loan - Financing Tips
If you have got former credit problems on your record and need to purchase a car, you may need to apply for what is called a bad credit used car loan. A bad credit used car loan will allow you to purchase a vehicle, but you will usually be expected to pay it off in a shorter clip framework and at a higher rate of interest.
Today many traditional car lenders are offering extended payment terms; some allow you up to seven old age to pay off the vehicle. A bad credit used car loan usually must be repaid within a 48-month time frame. Since the vehicle you are buying is used and your amount financed will be less, the lender anticipates the loan to be paid off in a shorter amount of time.
Research the Prices of Used Cars
Before making an offer on a used car, you should research the average terms value. By doing this you will cognize if a dealer have inflated the terms in order to do an excessive profit. You will desire to make certain you are purchasing the car from a reputable dealership.
There are a batch of companies who do most of their business with clients who have got less than perfect credit scores. Some of these dealers may seek to take advantage of customers. Just because you have got had credit problems in the past, this makes not intend you should pay an outrageous amount in interest rates or other fees.
Shop Online For a Lender
Online auto loan lenders do applying for a loan quick and convenient. By applying online you will have got access to respective lenders and their rates. Applications for online auto loans can be filled out in just a short clip and the approval is almost always granted the same day.
An of import point to retrieve when applying for a used car loan on bad credit is that banks have got bounds to how old of a vehicle you can purchase. The bulk of banks will not allow loans to vehicles more than four or five old age old. You should also seek to do a significant down payment when buying a used car. This volition lower both the interest rate you are charged and the length of the loan.
Furl It