All posts by admin

What to Know When Buying a Car With Bad Credit

Nowadays, it seems like your credit score determines your ability to buy anything from a car to a home. While it can feel like having bad credit can stop you in your tracks for certain purchases, that is not always the case. Bad credit auto loans exist out there for those who need a car but do not have the finances to cover the purchase in full. Before you rush off to take out a loan, here are a few things that you should know going into the process.

Your Credit Score

The biggest thing that you will want to know before you take out a loan for your car is your exact credit score. Knowing your score can help you to understand what you will be looking at in regards to the specifics of your loan. The interest rates and payment plan that you will face will be determined by your score, so make sure that you do your research and know your score before you contact an auto finance company.

Your Income

Another important thing that you will want to keep in mind is your income. Look over your recent paychecks and see what you make on average. When you have a more solid understanding of your exact finances, you will have no trouble coming up with a budgeting plan that allows you to make regular payments on your loan without ever falling behind financially.

Your Plan

You should also have a plan for the process. Going into a financial situation blind is an easy way for you to feel overwhelmed. Before you make your purchase, sit down and think about what you want to get from your car. Consider your lifestyle, what you will use the car for, and how much you can afford in a down payment. When you take the time to think about all of this, you will be able to pick a car that works for you while making your monthly payments as manageable as possible.

Tips for Saving up a Larger Down Payment For a Car

In all your excitement about getting a new car, make sure you don’t forget the importance of putting down a large down payment if you plan on financing your new ride. There are all types of loans, including bad credit car loans, but most of them will require the borrower to offer up a down payment to get the ball rolling. Here are a few tips for saving up a larger down payment to reduce the amount you have to borrow, and potentially your monthly payment:

Take Care of Your Credit Cards

If you have any credit card debt, taking care of as much of it as you can means you have more money you can devote to your new car’s down payment. If you can’t fully pay off one or more of your credit cards, look into getting a personal loan so you can consolidate your debt and net a lower monthly payment. You can save the difference between your old monthly payment and your new monthly payment in your down payment fund.

Ask for a Raise

Depending on your employment record and your employer, you might qualify for a raise. Rather than focusing solely on your down payment, base your requested raise amount on your professional accomplishments instead.

If you can’t get a raise, look into doing odd jobs on the side to make some extra cash without looking for a part-time job.

Sell Unwanted Items

You may have unwanted items collecting dust and taking up space in your home, ones that you can sell for some extra cash. It’s never been easier to unload unwanted items either online or within your neighborhood. Just make sure you do yourself a favor and do some research first to see how much your unwanted items are worth so you get a good deal.

With a little ingenuity and patience, you can save up more than you thought possible towards your new car. Best of luck!