Finding a Car Loan for Bad Credit
Bad credit car loans have become common as most of the Americans are credit challenged. If you have imperfect credit then you may have to face some problems in getting your favorite car as several bad credit car loans are issued everyday in
Review your credit history: Normally, people say that the credit report should be reviewed at least once in a year in order to make sure that there are no errors. Reviewing plays an important role especially if you are applying for a bad credit car loan. You may order for a copy of your credit report and you may also sign up for credit management product. There are some sites like annualcreditreport.com which provides a free copy of a credit report. This site gives you a free credit report once a year from each of the three nationwide consumer credit reporting companies. This is made compulsory by Fair and Accurate Credit Transaction Act (FACT Act).
Determine how much to pay: Make an approximation of the amount how much you can afford for buying a car. This must include both down payment and monthly payment. Use car loan calculator to calculate the amount that you can afford for your bad credit car loan.
Prepare documentation: You have to provide proof of employment and income. It is better to have documentation with you. If you have documentation with you then it will help you to produce it immediately when you are asked to produce it. This will help you to get the bad credit car loan faster.
Keep a clean credit history: You have to pay on-time in order to keep your credit history clean. Avoid unscrupulous car title loans even if you need immediate cash. Most of the people lose their car loans as they will be having unfair terms. It will be better to consider a refinance car loan, which involves accessing the equity in your vehicle.
These are some the things that must be followed before applying for a bad credit car loan. If you follow the above steps you will be able to get the car loan for bad credit car loan faster. You can start to find the car loan for bad credit by searching in internet. This will be the best and easiest way to search for a car.
Request Your Free Credit Score According to law, Equifax, Experian, and TransUnion, the three major agencies provide a free copy of the credit report of every one who wishes to access their credit report every year. These three companies use the government sanctioned website, AnnualCreditReport.com, to update the credit reports.
The following are some of the instructions that you can follow to get your free credit score:
1. Go to the online website AnnualCreditReport.com. Using this website, you will be able to get your all the three credit scores for free.
2. First, the website will ask you select your state of residence and then click on the button labelled “Request Report”. After this, you will be asked to enter the other information which will include your social security number and address.
3. Complete the process by answering all the questions which will include the questions about your credit history. If the website is not able to verify your identity, then you will be asked to submit your confirmation of your identity through mail. Suppose the website has some problem for processing your identity then do not assume that you have problem with your credit scores. As the verification process is automated, it may need a person to look after your confirmation.
4. After confirming your credit scores, check your credit reports and compare with each other. You must also confirm the information that you receive about your financial records.
5. After comparing the credit scores, dispute the errors if any and find with the specific credit reporting agency listings error with your credit score errors. All companies maintain an online dispute submission websites. These websites allows the people to check their progress of the disputes online.
5 tips on increasing your credit score
You can increase your credit scores if you do not have serious black marks on your report. Here are the 5 tips that will help you in increasing your credit scores:
1. Get your credit report copies: You can get your credit report copies from the www.annualreports.com. This is the only free website that will give your credit report copies. Review your credit report from all the three major reporting agencies. After getting the credit report copies, you have immediately clear all the errors. Errors are shown in the report.
2. Never delay in paying your bills: You must always pay all your bills on time. If you fail to pay, then you will have to negative effect on your credit score. To avoid forgetting paying bills on time, you can set up for automatic payments from your bank account. If you have overdue, then set up a plan which will help you in covering it up.
3. Clear your credit card balances: Clearing your debt on your credit is the best way to increase your credit scores. But if you do not have the enough money to do that, consider taking a loan from a family member or friend. That does not decrease your debt, but it does move debt off your credit report and increase your credit score.
4. Do not close unused credit card accounts: Closing the unused credit card accounts may lower your score. A good plan is to use your old credit cards sometimes, so that it does not stop reporting your information to the credit card bureaus. If you have a long credit card history, this will increase your score. So you must never close your unused or the older credit cards.
5. Get a secured credit card: If you do not have any credit history, or have a low credit score, a secured card may help boost your credit score if it reports your credit information to the credit bureaus.