Bad Credit car loans and complete solution

With so many people suffering from the bad credit, car loans have become very popular and well sought after. Imagine being in the position where you have bad credit but would still like to purchase a car. This article is meant to provide some solutions that can help you get the best deals possible when it comes to your next car purchase.

Apply directly to the car dealer, who would give you a bad credit auto loan.

Some people are in the position where they need to apply directly to the dealer, he will offer them a loan if they are approved by their bank first. This way, you can avoid paying overpriced interest and other extra fees. Just be aware of your budget and how much money you will be able to pay back each month.

Dealing with dealership might have some advantages, because they have their own financing terms which can make some deals easier.

Consider a private loan organization

A private loan organization will be willing to give you a loan, regardless of your credit history. This is an option that is usually recommended by many financial advisers and financial institutions. However, you should fully understand the terms of the agreement so that you will know exactly what to expect. 

Some of these companies also offer incentives like no interest if you are able to provide them with a down payment or payment in advance for the first three months or so. For example, car dealerships have been known for making up-front payments for their vehicles, but this type of reward deal is not common with private lenders.

See if your family can help you

Your family could be a good option to turn to in times like these. Maybe they would be willing to lend you the money while they can also take the vehicle as collateral. The only downside is that you might get a lower interest rate or even no interest at all. You will have to pay them back, though, so make sure that you are able to do so once you get the car.

Don't forget about your friends because they could offer ways to get a bad credit auto loan as well.

The friends who are willing to help are usually people that you have known for years, and they might be more willing than your family members or other people close to you. They might also be more sympathetic to your financial situation because they may have been in the same boat.

Get a leased vehicle

If you are often driving around town and looking for an affordable car, consider leasing a car instead of buying one for sure. Leasing can be more cost effective if you are open to the idea of not owning your vehicle when you reach the end of the lease. This way, you will pay less on your monthly payments and get a new auto at roughly half the price.

Some companies even offer bad credit car loans to people who are leasing their cars out to other people or have used their cars as part of their income.

Apply for a second credit card

Another solution is to apply for a second credit card. You will want to get a secured card so that you can put the money down before you take it home. Secured credit cards usually require a deposit of around $200 and this amount is locked until your account is closed or the balance is paid, whatever comes first. The best thing about these types of cards, aside from building your rating back up, would be that they offer lower interest rates, which can help you save on your monthly payments as well. 

You can also put your savings or a friend's or family member's money down. Although this might not be directly linked to your credit score, it is still an option that can offer you lower interest rates and better payment plans.

One more thing that you need to keep in mind, is that if you have been working for yourself for a while now, you will be considered as self-employed by the bank, which means that it will be harder for you to acquire a bad credit auto loan. So, make sure that you are prepared before going out in search of financing.

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How to Get Your First Credit Card Without Bad Credit

If you have bad credit, you probably have heard that no matter what you do, it is nearly impossible to get a credit card unless you have stellar credit. That's simply not true, though. In fact, there are several ways that people with poor credit can get a credit card. All they have to do is find the right card for them. The first thing they should do is contact their credit card company and ask if they offer a secured credit card. A secured credit card is a type of credit card that requires the cardholder to put money in an account that is only released if the user fails to pay off the balance on time. If the user does pay off his balance on time, then all of the money that was put down stays in the account and can be used as a deposit for another purchase or to build up good credit.

The first step, which may not seem very intuitive, is contacting your current bank or preferred credit provider and asking them whether or not they offer a secured credit product. The key to obtaining such a product is that you have to be able to prove that you have the money available to cover the amount of the bill, which can sometimes be done by having some other form of reliable income. After doing this, you will likely need to provide your bank with the following information:

1. Your name 2. Your current account number 3. The date that your account was opened 4. Signature (on the back of your card) 5. Amount of credit that you would like to build up 6. Reasons why this product would be beneficial for you 7. The method in which you are applying for credit 8. Contact information 9. Credit card number 10.

Conclusion

Overall, there are several options for people with bad credit to get a credit card. Some of them are secured cards, which require a deposit before the card is issued. Other options include other types of cards that can be used with bad credit but come with higher interest rates and more fees. These might be better options for those who have been on an even financial keel for some time and are looking to build up their credit without having to worry about paying a high interest rate right away.

The author has written a book called "The Art of Bad Credit Car Loans and Complete Solution"

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