Bad Credit Vehicle Loan

 If you are in the market to buy a new car but have found out that your credit score is less than perfect then the only option that may be open to you is a bad credit vehicle loan.

Check Your Credit Report

 However before you go out car shopping it is advisable that you get a copy of your credit report and co over it with a fine tooth comb. Many people with low credit scores have been able to increase their credit score dramatically by checking out their credit report and dealing with negative entries.

You can get a free copy of your credit report from each of the three major credit bureaus at Annual Credit report. This is a totally free service and you will not be asked for a credit card.

Bad Credit Vehicle Loan Options

 Car Dealer: Most used car dealers are affiliated with bad credit lenders. This kind of partnership allows the car dealer to do business with car buyers with bad credit thereby increasing their sales. It is important to note that the car dealer is not the lender and is merely a “go between”, between the car buyer and the bad credit lender.

Co Signer: It may be possible for a car buyer with bad credit to avoid a bad credit vehicle loan by getting a family member or friend with good credit to co sign the car loan. Remember if someone does co sign for you that if you default on the payments that the co signer will become liable and that the negative information will appear on their credit report resulting it your friend or family member’s credit going from good to bad.

 Bad Credit Vehicle Loan Requirements

 Bad credit vehicle loans will require:

• A substantial down payment of at least 20% will be required for most bad credit vehicle loans.
• Most lenders will require an upfront financing fee. This could be for as much as $1000.00 and is not refundable and will not be applied against principle or interest payments.
• Fully comprehensive insurance will be required for the full term of the loan.