If you have bad credit and are hoping to get a bad credit car loan there are several things you want to be sure of before you head to a car dealership. The first is that your monthly income is high enough to make the payments. To figure out how much you can afford, you should take advantage of an on-line car loan calculator. You will need to know what interest rate the bank will finance you at, how many years you will be financing the vehicle and what, if anything, you can put as a down payment.
To receive a bad credit car loan you will have to be able to prove that you can pay any other expenses that may be incurred by owning a vehicle. These expenses are the insurance, maintenance, and repair costs as well as the car itself. Any lender is also going to want to see that you have held the same job for at least a year. Showing that you have a steady income, are making all your other payments, and have maintained the same address, will increase your chances of getting a bad credit car loan.
Being able to put a substantial down payment on the vehicle will also help your chances of receiving a loan. If it means waiting a little bit longer to obtain the funds, it might be beneficial in the long run.
And you could always ask someone to cosign the loan. If this person has great credit, he may meet the necessary requirements. However, this means is that if you default, this person will be responsible for making the payments. It is very important that you are able to every payment.
If you are looking to finance a car, speak to finance manager. Just because you have bad credit does not mean they won’t work with you to help you restore your credit rating.