Reliable transportation is a basic necessity for millions of American families. Even if you have bad credit can still get a car loan with terms that will not break your monthly budget. Below are a few tips to help you figure out how to buy a car even when you have bad credit history.
1. Check Your Credit Score
Don’t just assume that your credit is bad or take someone else’s word for it. You can easily check for yourself by pulling your three reports for free at AnnualCreditReport.com. Take the time to go through your reports, check for any discrepancies and have them corrected immediately. Begin this process before you even apply for a loan as it will help you save money and time. Knowing your score allows you to clearly proceed with your financial situation and give you more confidence in the loan process.
2. Have Realistic Financial Expectations
If your credit score is poor, then it’s important to be realistic about the car you’re looking to purchase. Buying an expensive vehicle that is out of your financial league will only make getting a loan that much more difficult. Instead, be practical about what you need for reliable transportation and you will stand a better chance of getting the best bad credit car loans Glendale, or other Arizona cities, have to offer. Once you have worked to boost your credit rating and financial situation, you can land that dream car.
3. Create Better Financial Habits
So your credit is not so good, but when you actually know you credit score and you have set your expectations it is time to start good habits. Start right away, by paying bills on time. By attempting to maintain a clean payment history before applying for a loan will give the creditor more reason to lend to you. By doing this, your credit score will start to increase, and anything you can do to raise your score will help you in the long run.
4. Choose a Realistic Car
No doubt, it’s tempting to want something fancy, but you also want to avoid something that’s small or too junky-looking. A luxury car would be extremely expensive and would possibly interfere with your chances of on track financially. You also don’t want a car that you will be dumping your paycheck into repairs. Look for a car that is in good shape, runs efficiently, and is reliable. Look for a fuel-efficient and reliable economy car (i.e. an eight-year-old Toyota Camry). You may qualify to purchase a more expensive car, but choosing a reliable used car until your credit score improves will help you keep on your budget.
Bad Credit Car Loans Phoenix AZ
With so many options to choose from, it’s nice to have a little guidance from the experts. Come to Drive Now lots and check out the inventory of great used cars and trucks today–we finance everyone!