If you are in need for a new car or at least one that is near new but you are afraid that you won't be able to get one because you don't have good enough credit to get a car loan, there still is hope. There are some lenders out there that are sometimes willing to work with people who don't have some of the best credit. Follow the suggestions below and they should help make it easier for you when you are looking for that car and the auto loan to get it.
You need to be realistic about your situation when you don't have very good credit. Most people have too have of expectations and then they get frustrated with they can't seem to find any lenders who will help them get the car that they want. There really is no reason to get frustrated because a lot of people don't realize that if you have bad credit that the dealership themselves might be willing to keep hold of the papers for the car and be willing to finance the car for you through them.
However, if you are looking for the dealership to finance you will not be qualified for any of those 0% down or 0% deposit specials they always seem to have going on. Instead you will be expected to have down payment if you want them to work with you.
You can find dealerships that will work with people who have bad credit by doing a search engine search. They'll be able to find you dealerships in your area that will do financing for poor credit. They work with banks and lenders that deal with poor credit have more experiencing helping those with bad credit. They also might be a little bit more flexible with the down payment as well, more so than a regular more traditional bank.
You will though, because of your bad credit have to pay a much higher interest rate on the loan than someone who has really good credit. But if you really need the car, there really isn't much you can do about it.
After you have found the dealer that you want to get your car from they are going to require that you bring them copies of your paycheck, your driver’s license, bills that you have like your phone bill, electric bill and others that will validate your housing and your employment.
You will also need to make sure that you have copies of your bank statements, insurance for your current car as well as some personal references. If you don't have a checking account and only a debit card account, they will sometimes accept that instead.
After you have all of the information they require you can then start looking at the cars that they will be willing to finance for you. Remember, you may not be able to get the one you had your eye on when you first walked onto the lot. They will need to be able to figure out your lending level and then they will be able to direct you to the cars on the lot that fall within that lending level.
Don't be scared off by the initial interest rate. There are times that the lender will allow you to refinance the car after a year so that the interest rate can then be lowered. They do this to protect themselves and to see how good you do at paying your payments regularly and on time. If you do well for that first year, there will probably be no problems with refinancing and lowering the rates.
If you know that your credit is truly bad don't fall for those dealerships that claim they can get you a car with nothing down and no out of pocket expenses, this simply isn't going to happen for someone with bad credit. Also make sure if you can get references from other bad credit customers so that you can check and see just how well it went with them.