car credit options-little information about

First and foremost, if you have good credit – that is, if your FICO score is around 640 and up – you can shop around for a car loan through banks, credit unions, and a variety of other lending institutions in order to get the best possible interest rate on your auto loan. However, if you have poor credit – below a 640 FICO score – or if you have a limited credit history and no co-signer available, finding a lender that will consider you for a car loan becomes considerably more difficult.

It is important to know that there are a number of regional and national lenders available to you that offer subprime car loan financing. And while some of their lending requirements may be similar, most will probably vary greatly from lender to lender. The major issue for buyers looking for bad credit car loans, however, is that the majority of lenders do not offer direct lending to poor credit customers. Because of this, most bad credit customers are forced to visit a car dealership that has signed with a lending institution in order to qualify for one of their bad credit auto loan programs. Fortunately, there are a number of solutions:

One solution available to you is to call around and contact a number of different dealers. If you do, however, chances are that they’ll just tell you to come in and fill out an application. While you might get lucky and get approved with bad credit, the whole effort could end up being a waste of your time and embarrassing if they don’t approve you, which is likely to happen if you have poor credit. The reason is that many dealerships do not specialize in sub-prime lending.

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