Auto Financing With Poor Credit
Auto Financing With Poor Credit
How can I purchase my first car? I'm a recent college grad with bad credit & low-income?
I'm a 23 year old recent college grad. I just recieved my driver's license and would like to finally get a new or used car (I've been relying on public transportation to get me around). The only problem is, I have very bad credit and make only $700/month with no savings left over each month.
I really need a car by the end of this year. When I get to the point when I can get a car, how much should I have saved up (the average) to get my first car? Given my poor credit and low income, how can I afford/pay for the car (payment plans, financing, leasing, no credit check auto loans, insurance, gas costs, etc.)? What other paperwork, tips, tricks, buying info, etc. should I know?
I really appreciate your help! I know nothing about the process and requirements for buying my first car.
It should be 4-door, 4-cyls, not sporty. I would prefer Honda or Toyota... First time drivers usually have much more expensive car insurance, and it depends from car. You should compare insurance rates while choosing the car - for example here - carinsurance.deep-ice.com
Finance Your Car With Poor Credit
"Bad Credit Car Loans"
One of the most common methods of purchasing a car with poor credit is with a "bad credit Car Loan". You can acquire these loans through auto dealerships, online lenders, and high risk lenders. Typically these loans are available for anyone with a credit score below 600. People can find themselves in this situation after a divorce, after bankruptcy, if they have little credit, or if they have made poor financial decisions. The "bad credit car loans" are designed to protect the lender. They have higher interest rates than conventional auto loans. However, it is in your best interest to shop around for a bad credit car loan
Risks of Shopping around
There is a risk of shopping around for an auto loan. Submitting loan applications to several different companies will lower your credit score even more. It is in your best interest to find an organization that will find various Bad credit car loans for you, but only check your credit report one time.
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Home Equity Loan
Another way to get auto financing with poor credit is with a home equity loan. The interest rate on a home equity loan is usually lower than the interest rate on a "bad credit car loan". Another advantage is that the interest is tax deductible on a home equity loan. The one obvious disadvantage to this type of financing is that you are using your home as collateral. If you are not able to pay your loan, then you put your home in jeopardy.
Do not lose hope if you have poor credit. There are still options available to finance your car. Bad credit car loans, and home equity loans can help you achieve your goal of purchasing a new vehicle.
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