Before going to get a loan issued for yourself it is really important to know your credit. Get a free credit report that you are entitled to from Bankrate, know the reasons for your bad credit score and start improving your score by addressing the immediately addressable issues like delinquent payments. This step might improve your score a bit which may further help you while seeking loans.
Researching about current interest rates and terms of credit is really important, you need to get through with the present rate so that you stay informed and act upon your current situation. Go to several lenders and know the terms and the range of the actual interest rate you can expect to get and get yourself pre-qualified for a loan from credit unions and banks. Use your good relationship with banks and if that doesn’t work then go to credit unions which can fund your loan. The basic idea is to keep options open plus give yourself a better chance of negotiation with dealers and smaller lenders.
If financing through a dealer you need to make sure that all the terms and conditions are final and binding, see to it that all of it is mentioned in the document you sign and if possible avoid subprime lenders. Subprime lenders feed on people with low credit score and super high-interest rates with little to no benefits for you at all. It is always advisable to stay clear of them.
Take an experienced and well-trusted person with you to negotiate the loan. Always keep a trusted counsel to solve confusions and guide you better. This person will help you in getting a better deal and ensure that you don’t sign on scandalous things such as extended warranties and add-ons.
Don’t ever buy extended warranty and add-ons because they are always a scam from the side of the dealer which are more often than not such paper things with no real applications.
In the end, you should always remember that bad credit score shouldn’t mean bad loan. You should always be on a lookout for a loan with favourable terms and be prepared to search more until you find one because a bad loan will always result in a further decrease in your credit score plus financial difficulties for you.