Are there any tricks I can use to get a great car loan with bad credit?
Unfortunately, if you have bad credit and you need to organize a car loan, you are not looking at the best terms or the best interest rate. If you have a bad credit score, you have little you can negotiate with. There are no tricks or tips that will help you to get a great car loan, so you are basically at the mercy of the lenders.
However, be sure that the credit report is correct. Request a copy of your credit report and check it carefully. If you find that a mistake has been made, you can contact Veda Advantage (or the other agency where the default has been lodged) and contest the reporting. Of course, if you are reporting that a bill was paid off or has a balance you feel you do not owe, you may need to provide receipts as proof. If there has been an error that can easily be taken care of, you can dispute it with the credit provider and you may see a difference in your credit report within 5 business days. If more proof is required, it may take approximately 30 daysÂ
If your credit report is accurate, and you have a bad credit rating, you are pretty much stuck with high interest and bad terms. But check with several different lenders because someone else may be able to offer you slightly better terms than a dealer and any money you can save is definitely worth the effort. You may have to suffer the high interest on this particular loan, but start now to improve your credit report.
For instance, if you have late payments on your credit report, make sure that you are getting your payments in on time; if you are mailing them, allow time for any delays in the postal system. Whenever possible, make your payments in person or online. If your billing cycle date is the tenth of the month and you get paid on the fifteenth, see if the company can change the date for you. You not only save the late fee each month, you will improve your credit rating! It will only take a few months for you to see improvement in your credit score. And if your new car loan does not have a penalty for an early payoff, pay more than is required each month and pay this loan off early. This too will improve your credit score.
Do not get discouraged. It is true that a bad credit report is going to cost you money on a car loan, but actively working to improve your credit rating will give you more options and access to better rates on the next loan!
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