Monday, January 16, 2017

How to Buy Your First Car With Bad Credit

Just because you have bad credit or no credit does not mean that a new vehicle is out of your reach. With a little planning and some hard work, you might be able to drive off the lot with a beautiful new car in as little as a few weeks.

Start Saving Today

Even if you are eventually approved for a loan, you still need to have a sizable down payment. There is no set amount for how big the down payment should be, but most experts suggest around 20 percent. Those who have bad credit might need to go as high as 40 or 50 percent of the car's total value to ensure approval and more affordable monthly payments.

Prepare Your Documents

Having all of your documents together is not going to improve your credit score, but it will make you much more appealing to the lender and car salesman. It shows that you are willing to change your habits and put your best foot forward in order to get a new car.

Tackle Your Debt

If you do not need a car immediately, then you might want to try to close out a few of your bad credit accounts first. Lenders love to see when an individual has worked hard to remove some of the worst blemishes on their credit score.

Visit a Bad Credit Car Dealership

After you have collected your documents and worked on your finances, you can then visit a bad credit car dealership. These companies are designed specifically to help buyers find loans with good interest rates and affordable payments.

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