Buying a car with poor credit is made easier these days with the numerous on-line car loan brokers and individual car loan companies.
Car loan brokers are companies that will take your on-line application and search for the best individual car loan based on the loan amount, interest rates and payment options. Once you have this list of potential car loan companies, you decide which loan to go with based on your needs. Brokerages can save you time because you are filling out one loan application as opposed to many and, by doing so, could avoid potential processing fees applicable to loan applications. Also, they have more resources open to buying a car with poor credit.
Individual loan companies operate differently. They will only search out the best loan options for buying a car with poor credit based on what their company offers. So, in order to have the lowest interest rate or the highest loan amount approved, you will need to do your own research and complete loan applications for each company.
These companies make buying a car with bad credit less embarrassing because they offer asylum from your "bad credit" status with potential car dealers. Once approved for buying a car with poor credit with a loan on-line, you will be issued a blank check directly from the car loan source which serves the same purpose as cash and are given a specified time period in which to find a vehicle, sometimes up to sixty days to make your purchase. The benefit to having a blank check is that it works the same as cash, giving you more negotiating power with car dealerships because they know you can take the check to another dealership if they cannot meet your needs. Since they have no need to run a credit check, dealerships do not know your credit history and that you are buying a car with poor credit. They can offer you better incentives such as rebates or added features.
Using these pre-approved loan companies and brokerages can also help re-establish your bad credit. As long as your payments are made to the loan company on time, they will report your payment history to a credit report bureau. After a solid and consecutive period of on-time payments, you also have the option of re-financing your car loan to lower your interest rates since your credit standing is better than it was when the loan was originally forged.
Since there are endless on-line car loan brokers and an even greater amount of individual car loan companies that make buying a car with poor credit easy, especially those that advertise bad credit acceptance, it is always prudent to do your due diligence and research. Do not hesitate to question their rules and take your questions to a qualified loan expert for their opinion.
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