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advice for buying a new car

Are you in the market for a new car? Are you having troubles deciding what kind of car to buy or what dealer to buy it from? Having worked in the auto sales industry for many years, I have a ton of information on my blog that can assist you in making all of these important and stressful decisions. Visit my blog to learn how to determine what car is the perfect car for you, how to decide what dealership to purchase it through, and even a few tips on getting the best possible financing rates and options for the car that you choose.

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advice for buying a new car

3 Things To Know About Bad Credit Car Loans

by Earl Burton

If you need a car and have bad credit, you might think you are out of luck when it comes to getting a car loan. The good news is that you are not out of luck. Today, almost anyone can get a car loan, even people with really bad credit. If you have really bad credit and need a car loan, here are several things you should understand about getting a car loan.

Bad credit makes it harder to qualify

The first thing to understand is that it is always easier to qualify for loans if you have good or great credit. If you have bad credit, it definitely makes qualifying for a loan harder, but it is not impossible. Lenders always base approvals and terms of loans on a person's credit, and anyone with bad credit will have fewer options when it comes to getting a car loan.

Bad credit makes the terms less favorable

Just because it is harder to get a car loan with bad credit will not stop you from qualifying. You can qualify for a car loan if you apply for one with a lender that specializes in offering loans to people with bad credit. One of the only differences that you will see with car loans for people with bad credit is that the terms will be less favorable. The main difference you will notice is that the interest rate on the loan will be a lot higher for a person with bad credit. This is completely normal, and you should expect to have a high interest rate on the loan if your credit is not good.

When the interest rate is higher on a loan, it will cause the payments on the loan to be higher as well. The good news is that getting a car loan is not impossible with bad credit, and you can use this car loan as a way of improving your credit.

Bad credit loans can help build credit

If you go ahead and get a car loan with a high interest rate, you should aim to pay the monthly payment on time every single month. If you do this, the lender will report your payments to the credit bureaus, and this will actually help increase your credit score over time. By the time you repay the loan in full, you might have good enough credit to qualify for a good interest rate the next time you need to buy a car.

If you are in this position and really need a car, talk to a dealership like Bay Ridge Nissan that offers bad credit auto loans.

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