Cutting the length of the loan itself is a good way to lower interest rates on a poor credit auto loan.  Yes, your monthly payment will be a little higher but you will pay off the loan in less time.  Let us say, for instance you take a loan for a term on 48 months versus 60 months (4 versus 5 years).  A concrete example: you get approved for a poor credit auto loan for 15,000 dollars.  You go to the dealer and buy a 15,000-dollar car.  You put a couple of thousand down then pay sales taxes.  So you actually drive away with around a 14,000-dollar loan.

You final question before signing the contract and driving away is this: do you take a four-year loan or a five-year loan?  If your ultimate desire is to save money then take the four-year loan.  Yes, a four-year loan will increase your monthly payments between fifty and sixty dollars a month based on fifteen percent interest that is the norm for poor credit auto loans.  However, paying that extra fifty to sixty dollars a month will save you between 1,300 and 1,500 in interest charges on the entire loan.  Plus, you pay your car off a year early!

Another benefit to taking a shorter loan period besides saving money in interest is keeping your car’s value even or above the amount of the loan.  Then, if the car is involved in an accident prior to the loan being paid off you may not be over financed or upside down in the loan.  If you keep the car for the length of the loan the car will be worth more for a trade in because it is one less model year older versus a 5-year loan.

Apply for a poor credit auto loan here, online, today!

Sign and drive is often referred to as a car loan but in actuality it is a lease.  Through sign and drive you basically lease the car by remitting the taxes and title/license charges when you pick up the car.  Then you put down a security deposit and pay the first car payment.  All of these steps combined are sign and drive’s “down payment”.  The difference between this and an actual down payment on a bad credit car loan, for example, is the amount of money you put down.  The amount you put down is vastly less for a sign and drive option than for a bad credit car loan where you are typically required to put from 10 to 20 percent down.

Just about every bad credit auto loan is for buying a car rather than a lease option.  If you have low credit, unfortunately, you are usually not able to lease a car.  Moreover, sign and drive programs for leasing are normally only given to those with excellent credit ratings.  Due to these circumstances buyers with bad credit cannot be approved for sign and drive.

How do you forge ahead?  Well, the first thing to do is to improve your credit so that in the future you can qualify for a sign and drive lease on the next car.  Go online today and apply for a bad credit car loan.  Once approved, select a car in your price range to buy.  Complete the purchase with the dealer and make your car payments to the finance company on time.  This will be an excellent first step in improving your credit and increasing your FICO scores.

Once you successfully complete the bad credit car loan not only will you have improved your credit but you will also own your car outright!  Also, you will have some firm credit behind you broadening your options to either purchase another car or consider a sign and lease program.

Another advantage to applying online for a bad credit car loans is that since you applied online you are linked to a 50 state association of dealerships that focus on bad credit auto lending.

It is easier to get a bad credit auto loan if your bankruptcy was a Chapter 7 versus a Chapter 13.  Chapter 7’s usually only take a few months while Chapter 13’s can take a few years.  If your Chapter 7 has not been discharged simply apply for the loan once it has been in a few months.

Chapter 13 bankruptcies are a different ballgame since they can last several years.  If your Chapter 13 has not been discharged your Trustee must ask the court for an order to incur additional debt.  If the court allows you to take the loan you will get an official court document stating such.  The bad credit auto lender will need to see this document.  Additionally, the court will decide how much you are allowed to finance.

Whether you are in Chapter 7 or Chapter 13 bankruptcy you must never have a bankruptcy dismissal.  Courts will dismiss a bankruptcy if you skip court hearings and skip making required payments.  You will never get a bad credit auto loan if you have a dismissed bankruptcy on your record.

On the other hand, if you have a discharged bankruptcy, it means you did everything the court required you to do.  You will get an official letter of discharge on the bankruptcy.  Store this in a safe place so it will be handy for your car loan.

Next, check your own credit report.  This can be done by going to each bureau: TransUnion, Experian and Equifax, respectively.  You may also request your legally required free credit report from annualcreditreport.com.  If you see mistakes in your credit report, such as loans you never took or someone else with your same name, let the credit bureaus know immediately.  Then the mistake can be corrected before you apply for a loan.

Lenders look at your credit in two key ways.  First, they look at what is called revolving credit such as credit cards.  If your recent bankruptcy disqualifies you for a credit card you can get a secured credit card by paying up front.  For instance, get a secured credit card with a 500- dollar limit by paying $500 cash into the card before using it.  Second, lenders look at your installment credit, which are car payments.  You pay a set amount monthly for a set period of time.

There is a way back after bankruptcy.  A bad credit auto loan is a great place to start!

Not sure if you qualify for a bad credit car loan?  You should know once you finish this article.  There are several factors bad credit financers look for.  These are factors you should know so you do not borrow more than you can afford.  Remember, the goal is to successfully pay off your next car purchase.

Normally, if your credit has taken a hit recently bad credit loan holders will require you to pay for your first car with a bad credit auto loan.  If you pay off that loan then you may be eligible for a loan with better interest rates on the next purchase.

Make sure you are aware of your financial background.  You may think you have a good idea but to be sure go ahead and run a credit check on yourself to get your report and FICO score.  If your score is between 500 and 640 you may qualify for a bad credit auto loan.

Finance companies for bad credit, just like regular banks and credit unions, also look at the length of your credit history.  They are looking for how many years you have been in “the system”.  The more years you are in the system, the better, because finance companies can look at a credit pattern and history.  You need between 3 and 5 years of documented credit history through the bureaus to meet requirements for a bad credit car loan.

Lenders also look at your earnings.  In general, you should be earning $1,500 monthly, pre-tax, at least.  Besides what you earn, bad credit financers will also look at all bills and expenses you have every month to see if you will be able to meet the car payment.  Most of the time, finance companies will want your payment to be 15 to 20 percent of your income or less.  Also, how long you have been in your current job will influence whether or not you qualify as well as past bankruptcies.

If you have met the above criteria then apply for a bad credit auto loan today!

There are several significant “restrictions” on leasing and these include:

1. there is often a monthly or mileage cap which may or may not fit your needs. This is often between 800 and 1000 miles per month.
2. Generally leasing is available only for new cars and a new car may not fit your finances.
3. Leasing often requires good or very good credit making it hard for someone with very poor, bad or very bad credit to get approved
4. A lessee (the person who is leasing the car) has to carry very high limits of liability insurance and good collision – better than many people want to carry.
5. The car has to be strictly maintained in agreement with the lease terms

We’ve been working with folks who have very bad or very poor credit for over five years in helping them get the financing they need to get into their next car. What we don’t want you to do is make the big mistake of going to a “buy here / pay here” used car lot to get your next car. We work hard to show you much better alternatives if your credit is bad. What we’ve learned in this process is that local franchised auto dealers are often your best choice in getting the financing you need. They offer both leasing as well as financing and if leasing works for you they can provide it. They have a dual incentive, unlike lenders who have only one motive, to work with you. They:

1. Want to sell you a car and develop you as a customer and a return customer,
2. They want to make reasonable profit on the auto financing.

So when you are looking to finance or lease your next car, go on the internet and apply. Your application will go to a local dealer experienced in bad credit financing who can help.

We have been helping those who are credit challenged get the financing they need to purchase their next car for over 5 years. During this period of time we’ve learned quite a few things about how to make the process simpler, more hassle free and most importantly, end up with a successful outcome. I’d like to share a few of these with you. Hopefully they will help you get into your next car with a minimum of problems. It all starts with doing your homework first. Some cars are definitely easier to finance than others. These are the ones you should focus on. Generally these are cars that have:

1. a broad appeal to many age groups and income levels,
2. are economical to operate,
3. have a reasonable resale value, and
4. don’t carry a premium in order to insure them

Remember car insurance can be a serious cost when it comes to operating a car. Especially if you have bad credit, this probably indicates that you are struggling to cover all your recurring monthly costs. You definitely don’t want to make these costs any higher than they have to be. Controlling costs means:

1. getting a car that is reliable and doesn’t require a lot of repair and maintenance
2. having a car that is reasonable to insure
3. having a car that’s economical to operate, in other words get good gas mileage and is reasonable on wear and tear on tires and etc.

Selecting the right car that meets these criteria is the first important step to getting the best car if you have bad credit.

The other important piece of advice is to be flexible when you buy car. Dealers often have certain makes and models in their inventory that they really want to sell. They are willing to give the very best deals on these. A dealer will tell you what these cars are and if there’s any way they work for you, they are probably your best choice to get a good price, a better financing rate and end up with a successful transaction. Remember it’s a combination of factors that when all pulled together gives you the right deal.

Now there’s no more waiting a few hours or a day to see if you qualify for the loan.  You will know in a few minutes.  You still need to meet all the same criterion for instant credit as with the regular bad credit auto loan.  You need a credit score of 550 or up. You need roughly $1,800 a month pre-tax income.  You must have no un-discharged bankruptcies and not have had a car repossessed in the last 365 day year.  Your monthly bills including the proposed car payment cannot be more than 45 percent of your pre-tax income.

If you have privacy concerns not to worry: you get to make your own online account to run the instant credit check.  You will be able to pick your own username and password on a secure (https:) site.  This will protect your social security number and other confidential information.  Once your information is entered and your credit check is run your information will go to dealers and lenders in your geographic area that specialize in bad credit auto loans.

Advantages to instant approved credit, for bad credit car loans, is getting a step ahead in the process.  If you are in urgent need of a car either because you don’t have one or because your current car is off the road this process will give you a little more peace of mind.

You also get another advantage to the instant credit approval factor.  You immediately know that you are approved and for how much.  Participating dealers for bad credit auto loans normally view this just like a cash purchase.  They know you are approved for the loan before you even walk in the door.  They already know what your pre-approved price range is and they can select the cars on the lot that fit that range.  You walk in and the most involved thing left to do is to test drive, select, then sign the purchasing contract for the car you desire.  Apply today and see how easy it is!

Car insurance is an easy way to save money each year, every 6 months or every month depending on how you pay your premium.  If you do not have multiple accident or major violations, for instance reckless driving or DUI, you stand a good chance at saving on car insurance.

It always pays to shop around.  Almost every insurance company now has online quoting or toll free numbers for instance quoting.  If you like your current insurer and would rather not switch call the company and see if you are missing any discounts or policy coverage adjustments.

Since all insurance carriers run credit checks (unless you live in a state where that is not allowed) you should go online and run a credit check on you.  It’s good to do that yearly anyway but you certainly want to know your credit scores going into the process.  This will allow you to contact the credit bureaus and fix any inaccuracies or fraudulent activity before you apply for an insurance quote.

A few other things to keep in mind while you’re shopping for new car insurance: do not let your current policy lapse.  If you do the new policy is going to cost more.  Know that where you live is going to directly affect your insurance rates no matter how safe you drive.  Good drivers in New York will still pay more for insurance than good drivers in Montana.

Safety is important.  A car rated safer by Consumer Reports will almost always be cheaper to insure.  If you car is parked off the street or in a garage you will get better rates.  If you have a car alarm you will get better rates.  If the car has a GPS (to track if stolen) you get lower rates.  If you live in a lower crime area you get lower rates.  If you carpool or are retired thus driving your car less you get lower rates.

Last but not least get a few quotes rather than just one to compare with your current auto insurer.  You may be surprised how much you save.

What is a reference in terms of a bad credit car loan?  A reference is a person that knows you well enough to know that you are now established in your current financial situation to be comfortably making a reasonable car payment.  Your reference may be your employer, friend, colleague or relative.  The majority of bad credit lenders require four to six personal references on a loan application.  Have this list ready when you are filling out the loan application online or heading to the dealership.

Besides your reference’s name and telephone number their home address is also needed.  A work number may expedite things as well.  Definitely get permission from your reference prior to listed their information on a reference form.  Tell your reference that a lender and/or dealership will be calling them.  You certainly do not want what should be a good reference to turn into a bad one because they are disgruntled you failed to ask their permission to list them as a reference!

In the broader picture, a reference is part of a lender stipulation for a bad credit auto loan.  Stipulations, also known as stips, have directives or additional paperwork you are required to provide.  These are normal car loan information items like proof of insurance and a credit application.  The lender needs this information in order to build a case to grant you a loan.  So there will be extra stipulations with a bad credit auto loan.

Make sure you do everything you can to help the lender get you the bad credit auto loan.  Have your six references ready with all the information needed.  Have your driver’s license, insurance card, W2 or most recent check stub.  Have all this before your first trip to the dealer.  Then you are far less likely to have the frustration experienced by those who do not.  This way you can get a bad credit auto loan and begin to improve your credit.  You can also avoid going to a tote the note dealer that normally does not improve your credit since it is not reported.  Going through the process of providing suitable references may take a little more time upfront but when you get your loan in the end it will be worth it!

Installment credit, like an auto loan, carries a different weight with credit reporting agencies than revolving credit like a store or bank credit card. If you have had difficulties in the past with an installment credit agreement or have never obtained such a loan, you maybe shocked when you go to purchase a new or used vehicle and get turned down. That new credit card doesn’t mean as much to the car dealer or lender as your previous difficulties with installment credit. Not all dealers are prepared to extend credit to those who have had difficulties in the past, but our lender/dealer network has! Apply here and you will get prompt, courteous service from people who understand your situation and are prepared to help.

Buy here/ pay here lots won’t help! They don’t do credit checks because they aren’t members of the major credit bureaus. Payments made on time and per their agreement just let you keep the car. They do nothing to improve your credit score and rebuild your credit. Our dealer lender/lender network is made up of dealers and lender you know and can trust to make sure every on time payment helps to rebuild your installment credit.

We work every day with people who have had bad credit histories with installment type credit. We find the lenders and dealers who will extend you an auto loan despite your previous history. They will help you rebuild your credit history while you get the vehicle you need. Rebuilding your credit with a bad credit auto loan starts here. Remember credit isn’t always credit. Make that poor installment credit history start to disappear with an auto loan from us.

Had to buy your last car at Toxic Tony’s Tote The Note Car Lot, you don’t have to go back there again! Come to one of our web sites and we’ll do something for you that ol’ Tony can’t. Tony didn’t do a credit check because he wasn’t a subscriber to any credit bureau. So, all those payments you made to Tony paid off the car but left you credit wise, exactly where you started.

We want to help you get that bad credit auto loan because we want you back as a repeat customer. After all, we give auto loans to people with all kinds of credit. When you payoff that loan through our network of dealers and lenders we’ll welcome you back with more attractive rates and terms. We are the competition for all internet lenders, attractive terms competitive rates professional service.

Sure, bad credit auto loans can be a problem for some dealers but you can be assured that the rates and terms at our web sites are some of the most competitive you will find for your credit situation. Included at no extra charge are a network of dealers that you know and trust. Dealers who can service what they sell and who help raise your credit score with every on time payment you make.

Don’t just think about an auto loan as another obligation, think of it as a way to make the future brighter. By improving your credit score with a bad credit auto loan at our web site you make other major purchases in your life that much easier. Your credit score is your reputation in the business world. The dreams you have can be taken off hold with an improved credit score. At our sites we’ve been helping people for over 5 years, people just like you. People who had bad credit but began rebuilding it with us.  Log on to our site and fill out the application and go tell Toxic Tony to take a hike!

Many workers in the hospitality industry are on the horns of a dilemma, whether to report tip income, as required by law, or not. Tip income is not easily tracked if an employee does not report the monies received in tips to his/her employer. Many report only a portion, some none at all. It is, by IRS regulations, the responsibility of the employee to report tips to his/her employer so that the appropriate income taxes and social security/ Medicare deductions can be made. The IRS will even provide a form so that employees can keep track of just how much tip income they receive on a daily basis. Since many hospitality workers are not subject to federal minimum wage laws, tip income is what they live on rather than the traditional paycheck. Therein lies the dilemma, report all tips and you may end up owing tax, don’t and you have no verifiable income other than the paycheck. Bad credit can be the result. Not necessarily bad credit because bills are unpaid but bad credit because they have none.

In the financial industry, no credit is looked upon in the same way as bad credit. Obtaining credit when you’re in this category can be difficult. Bad credit auto loans are our specialty. If you are one of the many hospitality workers not covered by minimum wage, the amount on your paycheck is insufficient income to obtain credit for most purchases. We’ve dealt with many people who depend upon tip income and have assisted them in purchasing a vehicle. An example of that dilemma I spoke of earlier concerns the many hospitality workers whose income was damaged by the BP oil spill. Many found out when they attempted to gain compensation from BP for lost income that the unreported tips hampered their efforts.   BP asked those who requested compensation to provide them with a 1040 from previous year income. If tips went unreported guess what they were told? Tip income leads to a cash economy, no credit cards, installment loans etc. Thus the bad credit/no credit difficulties.

If you are not reporting a significant portion of your tip income consider the other ramifications. Your social security benefits are calculated based upon your reported income, what’s not reported doesn’t count. Many people see hospitality jobs as something other than a career path but find themselves 5 to 7 years on wondering where the time went. Five to seven years of under-reported wages can make a real dent in your retirement prospects.

Bad credit car loans are available through the traditional source for cash incomes, the buy here / pay here lots sprinkled around most cities and towns. Unfortunately they often get cars that the dealerships don’t want, offer limited warrantees and are unable to service what they sell. Furthermore, they are not members of credit bureaus, so those on time payments you made never improve your credit score at all. There are dealerships and internet lenders who will work with people who are paid largely by tip income. Many can be found at our websites as part of a network of dealerships you know and internet lenders who specialize in this type of credit situation. They are hooked into the major credit bureaus and the on time payments you make will make your credit score improve.

Receiving child support payments places you in a better situation to receive a poor credit car loan than owing child support.  This is particularly true if you get child support payments and have a pay-check of your own.  Dealers will see you are on a more solid footing financially and have more than one source of income.  However, you will need to have a source of income in addition to your child support payment.

Owing child support payments and having poor credit is a double-edged sword.  In all likelihood if you have poor credit and owe child support your wages are probably already being garnished.  So yes, you have a pay-check for a potential wage garnishment on a car note but your check is already being garnished.  In many cases, parents whose wages are garnished for child support are more likely to change jobs frequently in order to dodge the garnishments.  This makes for an even riskier proposition for the poor credit car lender.

The big picture here is to qualify for a poor credit car loan rather than to purchase a car from a “tote the note” dealer.  Tote the note means you often make weekly payments with extremely high interest rates.  Often, tote the note dealers do not report on-time payments to credit rating agencies.  So you go through all that aggravation and most of the time it doesn’t even help your credit!  If you receive child support payments take your bank and court documents to the poor credit car loan dealer as well as proof of your job income.  This will help you acquire a poor credit car loan where you can make monthly payments that get reported to the credit bureaus with less interest paid.  If you owe child support keep or begin paying that on-time monthly and stay in the same job.  This way you will establish some job and credit stability.

Pay your credit card bills on time or early.  Never pay them late, as that will negatively affect your credit score.  Why pay it early?  Sometimes banks report to the credit bureaus at an earlier date than the date your payment is due.  If you have a large balance it will look better when the report goes to the credit bureaus if you pay it early because then the balance will not be as large.

It’s all the little things that help improve your credit combined with consistency.  Remember, the difference between a score of 680 and 700 could be a lot of interest on a loan.

Car insurance is a big one.  All states require liability insurance but if you’re financing a car the lender requires you have collision coverage a well.  Depending on your driving record collision coverage may double your insurance premium.  If you have collision on your current car the cost of the coverage may increase since you are buying a newer car.  Newer cars don’t have as many existing parts in the market in the event of an accident. Most insurance companies will allow you to pay your premium in monthly payments but these are separate from your car payment.  It is also helpful to call your insurance company from the dealership and see exactly what it will cost to insure the car.  For instance, a Corolla may be cheaper to insure than a Civic or vice-versa.

Think about the size of the car.  An SUV is going to cost more to buy as well as gas than a sedan, for instance.  Your gas bill may even double with an SUV, tires cost double.  Bottom line everything costs more.  So if money’s tight in your house, stick with the sedan or smaller car.  Gas prices also go up and down like a yo-yo so even if you think you can do $3.50 a gallon in an SUV you need to be thinking can I do it at $5.00 a gallon?

Regular maintenance: oil changes, check-ups, tires, and spark plugs.  The question to ask is are there any major repairs the car will need before you pay it off.  Try to buy a car with a warranty that will cover it until you pay it off or at the very least an extended warranty on the engine.  What you don’t want is to make the payment then have another “payment” in repairs.

Don’t just think about can you make the payment but think can you make the payment combined with the gas, insurance, and a little set aside to cover maintenance and repairs.

Remember, the purpose of a bad credit auto loan is to improve your credit while you have reliable transportation.  Set yourself up to succeed in paying off the loan by anticipating related expenses before you by the car.  This will give you peace of mind and the knowledge you will be on your way to restoring your credit.

Simply showing a bad credit auto lender your bank account, or proving you have money in the bank, is not the same as proving what you earn.  Even if you earn at or above the minimum amount above you need to show through the 1040 Form your income is more than your expenses.  If your expenses exceed your income you will be turned down for a bad credit auto loan.

Most people get 1099’s rather than W2’s for taxes because they are independent contractors.  In other words, they do not work directly for the said company as an employee and have no contract or benefits with the company.  If the computers and office equipment is owned by you then you are more than likely an independent contractor.  Also, if you do not have to keep specific hours or work in a specific place then you are an independent contractor.

With more and more large corporations downsizing and laying off workers in this current economy more individuals are branching out and doing independent work projects for themselves.  Many of the independent contractors now would never have guessed they would be one ten years ago.

Regardless of how we are employed, classified, or earn a living we all still need a car.  To get an auto loan with bad credit you must be able to show your income.  Remember; report all your income so that you can show you have enough to cover your monthly expenses, a car payment, gas and insurance.  Be sure you credit score is above 640.  This number can be the threshold between getting a bad credit auto loan and not.

Make buying a car work for you and in favor of your credit through a bad credit auto loan.  This will help you avoid in house and “tote the note” lenders that normally require weekly payments and often do not report on-time payments to the credit bureaus.

1. Start by being very thorough. Provide all the information that’s requested and provide in detail and honestly. Don’t fudge and put anything down that isn’t factual. Its not very hard at all for the lender to verify what you’ve said, so don’t run the risk of putting something out there that isn’t truthful.
2. Be realistic about what you are trying to do. If you have very bad credit, what you are really looking for is to get approved. This will be an important first step to getting into your next car and with timely payments; you can start rebuilding your credit.
3. Applying on the internet is the starting point and not the end. After you apply, expect to be contacted. This means answering your phone. You will get a call from someone you don’t recognize and if you don’t answer your phone they probably won’t be able to help you. No lending process is done 100% over the internet; it’s a combination of the internet and the phone.
4. If you have financial problems, don’t try and hide them. You are working with people who are used to working with those who are credit challenged and they don’t consider your particular problems anything unusual. They see this situation many times a day every day of the week.

There are also a few other tips that can be very important to getting you approved. These include:

1. In most cases you will need to be employed. If you aren’t your chances are not good.
2. You need to be able to verify your income. This means have payment records. If you don’t, it’s a problem.
3. You need to have a permanent address and pay a mortgage or rent. Living with someone else or at home is considered a negative.
4. Your rent or mortgage costs should not exceed one third of your income.

Taking all this into consideration, it’s easy to see that not everyone is going to get approved. However, if you do meet these criteria, remember to present yourself in the best possible light.

The logical place to start is to go to a local dealership and just ask. But, we all know, that it isn’t so simple getting out of car dealership once you are there. To avoid the pitfalls that this entails, a great place to get you quote is online. There are many websites that can securely take your information and send it in real time to dealers and on line lenders that are interested in working with you. What makes this really nice is that it can be done from the privacy of your home right at your computer. Once  you are contacted by a dealer and have the information you need, you can then go down to a dealership and actually pick out and buy the car you want.

While a quote may be free, you also want to get the very best rate possible. If you have very bad credit, this may mean that you simply want to get approved and not turned down. They are several proactive things you can do to help yourself in this process. Among them are:

1. While you are getting a free auto quote, also get a free copy of your credit report. You can often do this at the same site. By having your own credit report you can quickly see those areas that are giving you a problem. Especially if there is misinformation, you can take steps to get it corrected. This is perhaps the best thing you can do for yourself.
2. Pull together the funds for a small down payment. You will be pleasantly surprised at how much benefit you will receive from being able to put some money down. It will definitely help you get approved and if approved, will certainly be an important part of helping you to lower your interest rate.
3. Be flexible in the car you are willing to buy. As we all know, the very most popular models often are discounted the least. Look for good deals on the less popular cars that may serve your transportation needs just as well.

In many ways you can think about very bad credit as a disability. Its something that can really hold you back and keep you from getting approved to buy a car that you may need very much to get to work, school or other needs. Just like with a disability you have to work to overcome the inherent disadvantages that are associated. However, the good news is that there are things you can do to help compensate. Let’s take a look at a few of the most helpful.

1. Always provide the most accurate information you have about your situation. Be forthright and truthful in providing everything that’s requested. This will set the tone with your lender or seller.
2. When looking for cars look for those you can afford to buy and not those that you want to buy. Being reasonable and sticking to cars that make sense for you and your situation is another way that you will favorably impress your lender.
3. If there’s any way possible to make a down payment, even a small one, definitely try and do this. It will go a long way in getting you both approved and a potentially lower interest rate.
4. Remember that there are other costs involved in your car ownership including auto insurance, maintenance, taxes and operating costs. All these added together is the real cost of your car. Be sure you have enough income to cover all of them are you could see the car get repossessed. A good rule of thumb is to keep the monthly payment you agree to within about 10 to 15% of your income. The rest of the costs added together should not exceed over 25%.

On many of the auto finance internet sites you will find a calculator and can help you compute what your costs are going to me. This will give you a very good idea before you ever get started as to what you are getting into and what you can expect as to your costs.

Translated into practical terms this can mean several things including:

1. You may have an easier time getting approved for your next bad credit auto loan.
2. You may find that the effective interest rate you have to pay on your bad credit auto financing is lower than you expected.
3. There may be more lenders or dealers willing to work with you to provide you the financing you need and the competition can help you get a better deal.

No matter what the outcome, the potential benefits can be positive for those with bad credit. What’s also important to understand is that one of the best places to find your next bad credit auto financing is the internet. It’s a much better option than wasting your time with a local bank or credit union or potentially getting cheated by a local “buy here / pay here” car lot. There are many sites today that can connect you directly with literally thousands of dealers and on line lenders who are experienced in bad credit auto finance and want to do business with you. Your job is to take the time to go to the internet and find a site that you are ok with taking the time to provide the required information that those wanting to help you need in order to make a reasonable credit decision. Remember they have an incentive to work with you. What you must be willing to do is to get into the process and give it the attention and follow up that anything worth whlle deserves.

I would suggest in today’s market, if you can’t get a report like this on a particular car, I would not consider buying the car. Its simply not worth the risk. The vehicle history reports usually provide you with every pertinent detail about the car since it was purchased the first time new. This includes all major repairs, wrecks and problems. You can quickly see if the car has had a problem and what kind. Based on that information you can determine if you want to go further or stop right there and start looking at something else.

This is not to say that some people try and “game the system” by having a wreck and not reporting it. They pay for the repairs rather than use their auto insurance. This is rare but it does happen. Nothing can beat the combination of a history report and a careful inspection of the car by a qualified mechanic. Some times this is possible and some times it isn’t. When it isn’t you have to rely on the report.

Especially when you work through a qualified dealership, they often pre inspect cars and those that have issues they don’t even offer for sale. That’s way I think its best to buy a used car through a dealership. Its certainly ok to also buy from an individual but it really helps if you know the person and can trust them. However you go about it, the idea is to make the auto history report an integral part of your car purchasing process. Its extremely valuable information and only helps you make a more informed decision.

We’ve been helping those with bad credit and really bad credit find financing for over 10 years. We’ve learned over time that reputable dealerships are a very good source of financing. We’ve been helping refer applicants who need assistance to dealerships that can help. The process starts on the internet with an application. Based on your information, its reviewed by a dealer in your area and the one most interested will be in touch with you directly. This is a convenient and easy way to find the help you need. Not all dealers are set up to offer bad car auto loans so using a dealer referral network is a great way to get matched up.

What we don’t want to see you do is go to a “buy here / pay here” lot thinking this is your only option. This is really never a good choice and one to avoid if you possibly can. Also it’s a good idea to stay away from the small lenders who are almost predatory in their rates such as cash advance stores and pay day loan stores. Remember they don’t sell cars and don’t have the incentive to develop you business as a return customer. There’s really no comparison to the services offered by a dealership when compared to these “fringe” lenders.

We also encourage potential buyers to try their local banks and credit unions. Both are generally great to work with. The only issue with most of them is that they are really primarily set up to work with very good credit. When it gets to bad credit and very bad credit, they are often not very helpful. Again what’s missing is the incentive to sell you a car and to make you an ongoing, repeat customer. At the same time these are the strengths of working with an established automobile dealership.

We’ve been working with people who are credit challenged when it comes to auto financing for about 10 years and have long thought that this is a plan that has long been needed. Too many people make poor financing decisions when they are buying a car and mostly it’s due to wanting to drive the car off the lot and emotionally agreeing to financing terms and conditions that just don’t work well for them over the long term. Until now there was no way to go back and easily correct these poor decisions. Fortunately refinancing provides this opportunity.

One additional benefit that often comes with refinancing is that you car can be paid off up to 30 days from your last payment. When you refinance, your new payment doesn’t start for another 30 days from when you sign your new note. This means you can get up to 60 days without a car payment! The money ordinarily going toward you payment can be used for other pressing and important expenses. This is a very nice side benefit that shouldn’t be overlooked.

When all the benefits are added together, it does often make an attractive package. There’s the chance to get a lower interest rate and to also get a lower monthly payment which in some cases can add up to $100 a month. This combined with a 60 day holiday in car payments makes for an attractive alternative to just sticking with your current loan.

If you find yourself in this predicament there are several things you can do to make it less onerous. Let’s take a look at your options:

1. First and most important is to don’t settle for the idea that you have the best auto insurance available. Shop around. This has become increasingly easy with the internet. You can complete the information on one site and, in most cases the site you are working with will comparison shop for you.
2. There are 3 ways auto insurance is sold. There’s direct by the company and this is done by Geico, Progressive and similar companies. Then there are policies sold by exclusive agents such as Allstate or State Farm. Finally there’s insurance sold by independent agents who represent a number of companies. Traveler’s and The Hartford are examples of these. Its preferable to have a quote from each type.
3. If possible, have a copy of your credit report. This way you know for certain what it says about your credit. There won’t be any surprises. If you see something on your credit that you think is factually incorrect, change it. This will in all likelihood improve your score and, at the same time, lower your insurance premium.
4. Take the time to understand what the insurance laws of your state require in regards to the coverage you must carry. If you have bad credit and don’t have a lot of assets to protect, which you probably don’t, then don’t buy too much insurance. In the real world it doesn’t provide you more protection but can increase your cost substantially.

None of these steps are hard to implement and no one of them, by themselves is going to save you a lot of money. But if you take the time to do each of them, then, in combination, you will find that they can have a real impact on your insurance costs. Hopefully, you will also realize that they can save you substantial premiums.

1. Know your credit score before you start. How do you do this? Its easy, get a free copy of your credit report. Each of the credit reporting agencies must give you one copy of your report every year for free. You can also get a free copy on many sites on the internet.
2. Read your report carefully and check for any errors. If you spot any, challenge them and insist that they be removed. Show any documentation you may have. The reporting agency has 30 days to prove its information is correct or remove you the data. This can make a impact on your credit.
3. Minimize the use of your credit cards to the extent possible. The amount of your outstanding balance compared to your credit limit is a big factor in determining your credit score.
4. Don’t continue to accept new credit cards unless you absolutely need them. What most people don’t realize is that every time you get a new card, the credit limit is added to your total outstanding credit liability. As these add up, you credit score declines. If you need or want the credit card, then decline it.
5. Make every effort possible to pay all bills on the due date. If you can’t afford it, that’s one thing but don’t let this happen due to carelessness. This also has a big impact on your credit report and something you are more in control of than you may think.

With just these few simple steps you will begin to notice big changes in your credit score. As your score gradually moves up, borrowing and loan approved will become easier.

1. Get your credit report…………..Most important is to have a copy of your credit report so you know exactly where you stand on your credit and you aren’t listening to some third party tell you have terrible it is. Remember, you can get 1 free copy a year from the credit reporting companies and you can find many free offers on the internet. Very importantly, if it contains mistakes that can definitely hurt your score, then you can have this information removed and that by itself will improve your score.
2. Don’t look in the wrong places………. Don’t waste your time looking for bad credit car loans where they only want to make good ones. This includes most local banks, credit unions and savings & loans. They really aren’t geared up for really bad credit. Also don’t jump off the other end of the cliff by going to a “buy here / pay here” lot. Remember they are also criminal. With high rates and onerous terms they are hoping you will default and they get the car back.
3. Look in the right places……………..In today’s car financing market, the best bad credit car loans are available from established automobile dealers who are experienced in working with bad credit. These dealers, unlike just lenders, have a dual incentive to work with you. They want to both sell you a car and provide the financing.
4. Make a down payment…………….. If there’s any way you can make a down payment, and then definitely do it! It will pay you huge dividends. Even a small down payment can reduce your interest rate. It may also lower your purchase price.

While you can’t make your bad credit disappear immediately, you can take these steps to make your next auto financing an experience that works in your favor, helps build your credit and enhances your ability to make your payments on time. Over time this will all work to help you improve your credit.