Can You Still Buy A Car If You Have Bad Credit?
“Subject To Credit Approval” this very catch is what creates a huge problem when you intend to buy a car. Apparently it seems that that all car owners are willing to sell you a brand new car accepting all your clauses but this subtags after every car commercial makes all the difference for you. Having a good credit score is always asked for by a car dealer as this is the biggest assurance that an buyer is in all condition to repay back the entire money.
What Does It Mean By Bad Credit?
In the credit report that you can receive every year enlists all your past and present mortgages, loans, leases, credit accounts with all specifications of the date of payments. Based on due payments you get a score between 300 and 850. The lesser the score the least likely are your chances of getting any kind of loan. In general those having a score below 640 hold some chance of getting loans. But a bad credit is one which is below 500 where you cannot get any kind of loan or lease.
Owning A Car With A High Down Payment
There are some dealers who do sell cars despite the buyer having a bad credit. But in that case you need to be realistic when it comes to the car deals. Car dealers actually ask almost half of the cost of the car as the initial down payment for owning the car. Other car dealers may go for higher interest rates which again increases the cost of the car. Hence if you have a bad credit you have to fathom the fact that you have to pay more than the actual price to own a brand new car.
Find A Lender Who Has Subprime Credit
Those who have credit score of around 640 are considered to have subprime credit score. Getting car loans for them is not a difficult task. If any of your close friend or relative has such a score, you can approach that individual for the car loan. You can repay him the money which he deposits in his own name in the bank. In this way you can buy a brand new car in the right price despite having a bad credit.
Work For A Better Credit Score
Do not plan to buy a car in a hurry. If you have a bad credit score then there is always room for making it correct. Take time to repay all your existing loans. Make sure that until and unless you reach at least subprime credit score, you ill not take your step forward to buy a car.
Buying a car in a bad credit score can also increase the pressure of repayment as most of the time as mentioned above the cost of the car becomes quite high.
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