A car loan can be the key to finally buying that vehicle that you've been dreaming of for so long. Having bad credit doesn't immediately stop you from achieving this goal.
Whether it was because of a debt that you didn't pay on time or because you'd surpassed your credit card's personal limit, having bad credit is nothing to be ashamed of. It doesn't turn you into a shopping monster and it can still allow you to apply for a car loan.
Keep in mind that you need to earn a minimum of $2,000 per month in order to qualify for a car loan. This, among other personal data, will be asked to you when you submit your application for the loan.
If you've bad credit, you'll probably be asked to set as down payment 20%-50% of the loan's total amount. This may seem high, but it'll give you the possibility to negotiate lower interest rates. Remember that you'll be paying for these for the next several months, according to the term that you agree with.
You don't want to be stuck in debt, so make sure you can afford to pay back the loan before you accept it! You'll have to consider the down payment and the amount you'll have to pay each month until the end of the term, which includes interest.
There are many lenders with experience who decided to provide loans for people in spite of their bad credit. The cause is simple: they’re such a large group of people that the risk of lending them money is for these companies significantly lower.
Lastly, it’s always good to prepare your negotiating skills. There are even professional negotiators who’ll help you organize your auto loan application and get a cheaper deal.