If your credit isn’t as good as you would like it to be, and yet you need a new vehicle or car service, it can be hard deciding where to turn for financing. You may be tempted to use “Buy here, Pay here” car dealers, but this in fact is not a good idea. Not only are these types of car dealers infamous for not staying in business for very long, but most of the time they only sell the vehicles that more legitimate car dealers won’t touch. A better option for those with credit issues is to seek financing first, and then shop for vehicles at a legitimate car dealership.
There are a variety of lending sources whose goal is to help those with poor credit obtain the lending they need for vehicles and other large purchases. Many offer not only lending, but credit repair tools as well, such as budgeting assistance, guidance for repairing errors on credit reports, and advice for living within your means, all from personal finance consultants. These types of lenders are located throughout the country, which means that the best way to access the right lender for you is to use the Internet to find and research each lender’s website.
Once you have chosen a lender and been pre-approved, you can then visit legitimate car dealers, and search for a vehicle that meets your needs, and your budget. Because your credit is already poor, and you are working to repair it, it’s incredibly important not to let the car dealers talk you into a vehicle that is more expensive than you can afford. There are all sorts of risks associated with letting this happen, including losing your pre-approval, getting your vehicle repossessed, and doing further damage to your credit score. So know what you can afford before visiting the car dealers.
A good way to choose a vehicle is to do some research ahead of time. Decide what you need in a vehicle now and over the life of your loan. By choosing vehicles that will meet your needs for the next five to ten years, you will be less likely to want to “upgrade” in the future. By paying off your loan, you’ll greatly improve your credit score, and assure that the next time you want to buy a vehicle, you can do so through traditional lenders.
