There are a number of ways for people with bad credit to buy a new or used car, with one of the best options being to buy it from a dealership that offers bad- or no-credit loans. Buying a car with poor credit is possible, provided the person starts planning far enough in advance, knows where to look, and is willing to accept a loan with less-than-perfect conditions.Continue Reading
Even with bad credit, a person shouldn't sign up for the first loan he is offered, as the interest rate and terms can vary quite widely. Instead, it's better to shop around to find the best loan available.
It is wise to obtain a copy of all three credit reports at least three months before buying a car, as this allows a person to fix any potentially damaging issues and possibly improve his credit score before applying for a loan.
Getting a car loan, and successfully paying it off, is one of the best ways to raise a person's credit score. However, it is important to make the payments on time. Many financial experts actually recommend buying a new car if at all possible, as used cars sometimes require expensive repairs that could affect a person's ability to make his loan payments. There are many dealerships and lenders that specialize in selling cars to people with a low credit score, and these are usually the best places for a person with bad credit to shop.Learn more about Credit & Lending