One’s credit history plays a very important role when you plan on getting a car.
A history of bad credit can be a big problem. Whether you intend to lease or buy a car, you may encounter some companies who not willing to offer lease or loans to a customer with bad credit.
Still, if you do the research, there are some leasing companies or lending firms that offer services to people with credit problems. Usually, these services come with higher rates to make up for the individual’s poor credit. Other auto loan lenders may require their high-risk clients to submit a security deposit.
What if you have bad credit and you need to get a car?
Would it be better for you to buy or lease a car? The truth is, both of these automobile financing options are worth considering. Many car lots that cater to people with credit problems are called “Buy Here / Pay Here” lots. Which means the car lot is financing the car in house instead of using a finance company. If you purchase from such a lot, ask them if they report to the major credit bureaus. This way you can be assured that the payments you’ll make will be reflected on your credit report and will slowly boost your credit.
Since not all lenders and leasing firms cater to people with bad credit, you would need to do some research. Don’t hesitate to learn as much information as you can about the company’s policy and guidelines when reviewing clients. If the lending company has restrictions against people with poor credit, you can always try other companies.
Don’t settle for the first auto lender or leasing firm that promises to accept your auto loan application in exchange for unreasonably high interest rates.
There are auto loan lenders in the market that offer bad credit auto loan approval with reasonable rates. In addition, don’t forget to inquire about the rest of the charges you’ll be paying.
Whether you intend to obtain a car lease or a loan to buy a car, it is recommended to personally check your credit report first before submitting a car loan or a car leasing application to your preferred lender. Reviewing your own credit report will give you the advantage of knowing where you stand. Be aware that some car dealers may attempt to take advantage of you and knowing your personal credit score will protect you from such types of dealers. If you suspect that a lender or a car dealer is taking advantage of you, take your business somewhere else right away.