Used Auto Loans
Purchase an used car might be a best way to save money, while securing an used auto loans is not so easy, especially for those with bad credit. The good news is that there are many ways to obtain an auto loan, bad credit or not. Refer to the tips below will enable you to learn the best ways to receive a used auto loan even with bad credit.
Tips of securing a best used car loan
1) Credit score - the 1st thing borrower shall do is checking the credit score, if your credit score is in good or excellent category you will probably obtain a fair or good offer from lenders. For those with credit score below 680, you should begin working to bring their credit score up. By paying off defaulted loans and keeping credit balances low, will definitely increase credit scores.
2) Compare auto loans online - there are many lenders are offering used car loans online, get them to quote for you and the quote shall according to your situation. Compare their rates, term and conditions, make sure they are quoted the same figure and term.
3) Evaluate the car price - Check the current price of the car you desired from e-bay, how much does the car sold recently. And you may check the car price through "Kelley Blue Book". You must have a clear amount to get the loan.
4) Collateral - sometimes it's easier for those with bad credit to secure a loan by placing a collateral. Some cases are the used car itself already as a collateral to lenders, however if you have other asset such home or property may also place as collateral.
Other than tips above, you may seek for alternative loans such home equity loans, personal loans or get a fund from your relatives, parents or friends.
For more car loan information, please check out Car Loan Guide instead of Used Auto Loans
Return to Loan-God Home Page
Return to top of the page