Car Loans For College Students: Preparing Yourself For The Best Deal

What To Do Before You Visit A Auto Dealer When In Need Of A Car Loan After Bankruptcy!

It can be hard enough finding a good pre owned auto that will be reliable and give you at least a few years of good service. But finding that along with car financing to go along with it, if you have bad credit can be a lot more challenging. There are plenty of car dealerships out there that will give you a great deal on a new or used car. The problem is that when you do find that decent deal, make sure the dealer does not try and add in tons of extras that you do not need, that will do nothing but wind up costing you a lot of money that you really cannot afford to spend!

Having credit problems or a repossession can be a extremely discouraging when your dealer comes back to you with an extremely high interest rate on your auto loan. It sort of makes you believe that there is no way you can get a good deal on a car loan if you have poor credit.

At times this can be true but one thing to remember is that car dealers need to sell cars. Don’t be afraid to walk away and try your chances at another dealer if you feel you are not getting a honest deal. The message I will try and get across to most readers of this article is what to do to prepare yourself to get a fair deal when shopping for a car loan after bankruptcy.

One thing that you should do ALWAYS before you step foot inside a car dealership is, get your credit score. If you know exactly what your score is before entering the dealership you will have better negotiating power when the time comes. The majority of people go find the automobile they like first, then then speak to a person at the dealership, then the representative breaks the news to them that their credit history is very limited and they managed to push the deal through with the finance company but it has a high interest rate. In this case you have set yourself up to get overcharged on your loan and interest rate, which will wind up costing you literally thousands of dollars more over the life of the car loan.

Your initial step should be to go and search for a service that offers all three credit reports with FICO scores. You can find literally tons of these services on the internet by searching for them in Google, Yahoo and MNS Now known as BING. The three credit bureaus mainly used by lenders are Equifax, Trans-Union and Experian. You can also request a copy of a free credit report from all three agencies once a year, without lowering your credit score.

Lenders use the FICO score as one of the single most important factors for determining credit strength. Credit scores usually range from 390 to 900 with anything over 699 being considered as good credit. If you walk into a car lot saying you have limited credit and they run your report and see that you have a 680 FICO score, the dealer may consider offering you a higher interest rate simply because you thought your credit history was extremely poor, when in essence it was better than you thought. You must remember that car stores have to make a certain amount of profit on every automobile they sell because they have a big overhead. So it is expected that they try and overcharge you when they can. That is just how this kind of business works. But I am a true believer that a deal has to be profitable for the dealership as well as the customer. I feel that no car shopper should be taken advantage of!

People search everyday for great deals on poor credit car financing. There are plenty of destinations online that can accommodate guaranteed bad credit auto loans. Try going to AutoFinanceOnline.us. They have a 98% Approval rate!

categories: consumer,loan,lending,leasing,personal finance,debt consolidation,bankruptcy,students,military,armed forces,mortgage,refinance,family,vehicles