Buying A Car With Bad Credit Essay

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Buying a Car with Bad Credit: What You Need to Know
Bad credit is considered to be a credit score under 630. Many Americans struggle with bad credit for a variety of reasons. This can have a definite stigma on you when you are trying to buy a car. However, there are options available for people with bad credit to finance a car. These are tips you should keep in mind when you want to buy a new car but you have bad credit.

Check Your Credit

If you have bad credit, you should start your journey toward buying a car by obtaining copies of your credit report at least one month prior to visiting car dealerships. It’s important to thoroughly examine the reports to check for what they contain and why your credit score is low. Check to make sure everything is correct and that there are no mistakes present. Car salespeople can take advantage of discrepancies and try to give you loans that are less than fair. If you notice any glaring mistakes in your reports, immediately report them to the credit bureaus.

After errors have been corrected, you should buy a copy of your FICO credit score. Check whether your score has improved; if it has, it will make things easier when you’re ready to buy a car.

Work on Fixing Your Credit

Following with the previous tip, you should work on your credit before you …show more content…

Find mainstream car dealers and lenders who are legitimate. Good dealers tend to pair customers with bad credit with loans that include high interest rates because they are considered high risk. However, those that are less than legit will try to match you with so-called bad credit specialists that are essentially designed to fail. In the likely event that you miss a payment on the loan, the dealership could subsequently repossess the car. This gives dishonest dealers an extra source of income. Don’t fall for the tactics of such dealers when they try to put additional features in a car that you can’t afford,

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