Finance Used

Bad Credit Car Financing

Bad credit car financing is tricky and a hard issue to face. In todays society you need to have a car regardless of your credit, which means for may people they will have to face financing with bad credit. Our first recomendation if you have bad credit and need a car is to wait and save money to buy the car with cash. This will save you from having to deal with high interest rates and unsavory dealors. This is not on option for many people though.

Tips for Financing an auto with bad credit:

1. Get your credit report if you haven't already done so. You can get a annual credit report for free from the credit bureau's, its a requirment under US law they make it available.
2. Request corrections for any information on your report that is untrue. For instructions on how to remove false information on your credit report go here
3. Pay any debts you can and have them removed from your credit report
4. Save enough money for a small down payment. Having money for a down payment enhances your negotiatiing position and may lower the interest rates that you are offered. .
5. Shop around and find the most affordable option out there, you don't want to pay high interest on a lot of money if you don't need to. Look online and offline for good deals, make sure you find the blue book value of the car you interested in or see an edmunds report on it.
6. Be ready to walk away when you negotiate over a car. The dealers are going to try to make you feel like you are helpless because of your bad credit. You are not helpless, because there is always another dealor that wants your money.
7. Remember the negotiation doesn't stop at the car's price you also need to negotiate the financing terms.

Good luck and keep a cool head.