A Car Loan For Bad Credit Rating

Most of us realize that we require car insurance if we have an auto. But are we all aware that to get a car loan, our credit rating has to be at least good. And even having missed a single payment may be the cause of a car loan denial. With this in mind, here are a few pointers if you are looking for an affordable car loan but have a rather unhealthy credit rating.

We all know the routine - meet the salesperson, they convince you on the car, you follow while they lead you to the office, they check out your credit rating and history. So, depending on this check, you will either be accepted the car loan or you simply will not.

For those of us that are successful, we now have a lovely car to cherish and show off to our friends and neighbors, along with a long payment period too. For those of us who were unsuccessful, well - firstly we are going to be disappointed - perhaps very disappointed! But next, we are going to be wondering what we can do to change this situation around. It's embarrassing for us and it's frustrating for us. We do not want to have to go through this again.

Well before we even enter the car dealership, we should already have a very good idea as to how much we want to spend. We should know our budget and how much we can afford. We should also have a good idea how much annual interest we are prepared to accept. Only once we have these answers can we proceed to the actual business of the car loan.

If you have been late on a loan payment before then the chances are you will need to increase the percentage rate that you are prepared to accept - perhaps by a couple of points. At the same time, you should prepare yourself for rejection from one or two car dealerships. From their point of view, they do not want to take risks, and you may well be perceived as just that - high risk.

There is another way to go here if your credit records are less than perfect. Have a look around for those car dealers who are desperate to move their cars. You will find that these dealers may well ignore the fact you have poor credit, simply because they are desperate to sell. Furthermore, you could score yourself a great interest rate on the car loan too.

Finally, if you are decent at negotiation and the thought of it does not frighten the life out of you then you should definitely negotiate with the salesperson. If you take the first price they offer you, probability is you are spending your hard-earned needlessly. If you negotiate tactfully you probably will come away with a decent saving on the auto loan and the over-all cost of the car. Next time you go to the car dealers, try negotiation. You may well be surprised just how effective you can be!