Know Your Credit
Knowing your credit is a vital part of the car buying process. Not knowing what
is on your credit report can cost you $1000′s of dollars in extra finance charges.
When you know what is on your credit report and your exact credit score you can
negotiate the rate that the dealer/lenders offers you. That is right, you can negotiate
the rate of your loan but only if your have all the ammo.
You are entitled to a free credit report from the three major credit reporting agencies
annually. A service established by Fair Credit Reporting Act (FCRA) requires each
of the nationwide consumer reporting companies to provide you with a free copy of
your credit report, at your request, once every 12 months, from Smart Credit.
The Federal Trade Commission (FTC), the nation’s consumer protection agency, has
prepared a brochure, Your Access to Free Credit Reports, explaining your rights and how to order
a free annual credit report.
How Much Can You Afford?
A good rule to use is to take 50% of your gross monthly income and subtract all
of your monthly payments like rent/mortgage, credit cards, personal loans, and personal
obligations. Now take the balance and multiply by 40% and that should give you an
estimate on what you can afford for a monthly car payment. Based on your credit
history the bank may make your allowable payment higher or lower.
Knowing how much you can spend on a car is a great tool in getting the best price
from the dealer. When you have a set price in mind before you start shopping it
will protect you from overspending, and can minimize your required down payment.
When you are pre-approved it forces the dealer to work within your budget. That
is why we always say “have your loan in your pocket before you go shopping.”
Finding The Right Dealer
Here at Bad Credit Car Loans we have hand selected over
1000 dealers across the country, and several lenders, to help our customers get
the best deal on their car purchase and auto financing. All of our car dealers are
monitored to insure that our customers are treated according to our high standards
of customer service and satisfaction.
Negotiating A Fair Price
Research, research, and more research. What that means is research the car you want
to buy. Know the value of the car. Know the history of the car. Know how well the
car retains it’s value. These are things that will put you in a better negotiating
position with the dealer.