The Best Options to Financing a Car With Bad Credit

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By BRUCEORANGE

The Factory Finance Arm and the Business Office: This combination allows you to finance a car with unprecedented flexibility. You will be working with people who not only can find you the car that you desire, but also the ones who will finance it. You may be given the option to Buy Here Pay Here Car Dealers if you work with the finance arm and business office. The factory may want to prove that the car has enough intrinsic value to warrant the loan. It may also be more than you expected. If you are able to afford the monthly payment, then go ahead and buy it. To show that you have a lot of equity in the vehicle, you may need to increase your downpayment. It improves your creditworthiness.

You can use a Bad Credit Financing service: This is a new concept that specializes in financing people with low credit scores. They will still be able to find credit for you even if your past history includes bankruptcies, repossessions, slow pay or no pay. This may be the only way to finance your vehicle. The interest rate is high, and they may pull your vehicle from the parking lot if you are late.

The Dealership’s In-House payment department: This option allows you to buy a car. The dealership will finance the car and you pay the monthly installment. You should be aware that if your payments are not on time, your car may disappear.

A strong co-signer: You might consider asking a close friend or family member with good credit to act as co-signer for your car’s loan. You will receive the car but your friend or relative will have to pay the bill if the other party defaults. If you decide to pay your friend or family member and then stop paying, you could get into serious trouble.

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Get your current finances up to date and pay off your credit cards: Although this advice is old, it’s still very relevant. It shows that you care about your credit and are willing to take responsibility for them. This is the best way to rebuild credit so that you don’t have the bad credit blues.