Loan Articles

Individuals with tarnished credit scores can get the car they have always wanted on a decent leasing plan by following some simple pieces of advice. Here is how to do the trick. First of all, you should save some cash for a down payment or deposit as otherwise, the dealer may turn down your leasing application on the basis of your bad credit score.

Having saved the money for an initial deposit or down payment, you should now find a car dealer that will agree to sign a leasing contract with you regardless of your bad credit score. The good news is that the Internet is full of car dealers that have specialized in dealing with customers with poor credit history. More often than not, these auto dealers work with sub-prime lenders and financial companies; so, you should not be surprised if the interest on your car loan appears a bit too high at first. The good thing here is that these lenders are far more flexible in view of the down payment and the monthly installments on your leasing contract than any of the traditional banks. Moreover, you will be able to apply for refinancing at a lower interest rate after the first year or so.

Upon filing a car loan application, you will be required to submit a copy of your latest paycheck, your driverís license, as well as a copy of your electricity or landline telephone bill. This last requirement is necessary to validate your residential address. Some car dealers may also require that you submit additional documents such as a bank statement, a checking account number and a valid car insurance policy.

Having done all the necessary paper work, you should start looking around for cars within the price range covered by the car loan you have applied for. Note that some car dealers may ask you for the down payment upon signing the leasing contract; so, make sure that you are ready to show them the cash. If everything goes well, your bad credit car loan should help you improve your credit score. Still, you should be careful to not get into bigger debt that will be even more difficult to handle. In this line of thoughts, you should avoid car dealers that promise to get you a brand new car at a zero down payment, as they will most probably charge outrageously high interest rates.

You have to also watch for dealers who lie that the bank requires you to buy a credit life insurance, extended warranty, or glass VIN etching. They may also lie that your credit score is lower than it actually is. Make sure you check it with the credit reporting agencies. If your credit score is too low that you were rejected, the dealer may try to trick your co-signer to become the prime borrower. So, when looking for a dealer, make sure you familiarize yourself with their conditions and seek expert advice if unsure of what the consequences would be.