If you’re in a bad credit situation or haven’t had the opportunity to rebuild your credit history, then there is a solution. The biggest purchases you will ever make in your lifetime are a home and a car. Most people have to take out a loan to buy either, and if you’re in a bad credit situation it can be next to impossible to get financed for a car at a regular dealership.
Bad Credit Auto Financing to Rebuild
There is a way to not only get auto financing with bad credit but to also rebuild your credit profile. The solution is to buy and finance a car. Certain dealers will finance people in a bad credit situation and report your payments to all three major credit agencies. This was not standard practice in the past and it really isn’t standard practice today either. You have to find which ones do this and which ones
Having bad credit and no credit can be a very expensive proposition. Interest rates are higher and you most likely have both bills and bad debt to pay. This means that money can be extremely tight. If you have bad credit it doesn’t make you a bad person. Sometimes bad credit happens to good people but there is light at the end of the tunnel. When you have credit problems it’s best to keep all of your expenses as low as possible.
This means you should target cars that get good gas mileage, are low maintenance, are cheap to fix and are extremely reliable. You want as little cost as possible as you rebuild your credit profile. Once you establish a good credit score and pay down your bills you’ll get lower interest rates and save money over the long run. This means you may have to drive something for a while that you may
There a few reasons why down payment is important, all to the customers benefit.
1. Uncle Sam: This dealership pays your taxes for you up front. This means that a chunk of your down payment has to pay taxes before hitting the balance. When you take out a loan you pay interest. The bigger your down payment is up front the more money you will save on interest.
2. The bigger they are the harder they fall: The larger your down payment, the lower your monthly payment will be and the more money you save over the long run. Let’s say your taxes up front are $500 on a $7,000 car and you put $1000 down. That takes the note down to $6500 because you’ve only put $500 down after taxes.