| You want to buy a car but think your credit isn't good | | | | Research financing options such as banking institutions, |
| enough? You're not the only one out there. You may | | | | credit unions, loan brokers, and auto finance companies. |
| be tempted to consider a bad credit car loan. | | | | Assess the interest rates and repayment periods they |
| As the name implies, a bad credit card loan is a viable | | | | are offering against your requirements. Compare |
| alternative for people who are interested in buying a | | | | these plans with available car loan options to find out |
| car but are haunted by a poor credit history and are | | | | which would be more suitable for you. |
| low on disposable cash. Here's what you should know | | | | Longer loan period |
| before considering such a loan: | | | | The appeal of a longer loan period is high because it |
| Know your finances | | | | means that you have more time to pay off the loan. |
| Carefully examine your finances so you have a | | | | However, this also means that the total interest you |
| realistic budget in mind before setting out on your | | | | pay over the loan period may be higher. |
| search for your car. You may also have to lower your | | | | Future consideration |
| expectations for your dream car. | | | | You should be aware that if you have bad credit, |
| Your lender will determine the interest rate on your car | | | | applying for more car loans will continue to negatively |
| loan on the basis of your credit report; a bad credit | | | | affect your credit score. In such a situation, consider |
| history will mean higher interest rates. In the US, you | | | | buying a new car only if it is absolutely necessary. If |
| can request a free credit report from to know exactly | | | | not, avoid this expensive purchase to pull yourself out |
| where you stand. | | | | of the financial red zone. |
| Research other options | | | | |