I HAVE POOR CREDIT or NO CREDIT RATING
To many consumers with blemished credit or no credit rating concentrate only on being approved , type of vehicle and affordable payments , the dealer knows this and will maximize for profit...you will most likely have paid full asking price for vehicle plus having an extended warranty - perma shine - life insurance - and whatever else aftermarket the dealer can profit from...IF YOU FALL INTO THIS CATEGORY you will never re-establish your credit
It's very important you understand how the process works before you start to phone or visit dealers...
If you have gone through bankruptcy you probably think that there are no chances of you getting finance again for many years. The truth is that bankruptcy is really a drawback when it comes to applying for a loan or credit card. However, if you follow these guidelines you'll be able to improve your credit score and recover you ability to obtain finance.
Unless you are willing to pay terribly high interest rates, you should try to raise your credit score as much as possible. The lower your credit score, the higher the risk for the lender to grant you a loan and the higher the risk, the higher the rate. This is unavoidable, of course there are special situations that may have caused your financial breakdown, but there are no means to avoid this and lenders can't take subjective facts into consideration when it comes to fixing the interest rate.
Repairing your credit
Repairing your credit may take some time, but here is the way to start. Open a savings account and start making regular deposits. You don't need to deposit large amounts, but the fact that you have an income that lets you put away an amount of money regularly will soon be recorded to your credit history and will highly contribute to raising your credit score and improving your credit history. This is just the first step but as a first step, the most important one.
Credit Cards
Once you've a reasonable amount of money in your savings account, use it to apply for a secured credit card. Secured Credit Cards are just like regular credit cards only that you can only borrow the money that you've previously transferred to an account. There is no risk for the card issuer so you'll be able to get it even if your bankruptcy is close in time and your credit is not that good.
After using your secured credit card for a while you can apply (if you haven't been offered one yet by that time) for an unsecured credit card. Your credit score improvement will most surely let you get approved without hassles. Make sure you use the card wisely, make small purchases pay the credit card balance always in full if possible, and never miss a payment nor make late payments.
Using your credit card wisely will help you skyrocket your credit score. Now is the time to start requesting small personal loans. Asking for small loan amounts will guarantee that you'll get approved. Your regular monthly payments will do the rest, your credit score will soon reach a status where you'll be able to request personal loans at very reasonable interest rates.
Final Steps
At this time you should have reached a good credit tag and you'll be able to obtain any financial product that you need. Refinancing your home loan would be the next wise step to continue improving your credit score. Or you could request a home equity loan. Either of them will prove to future lenders that you are able to commit to repaying higher amount loans and that you've finally put behind your bankruptcy.
The Trade - In Scam
Drive this car 6 months to a year make payments on time and your credit will improve, then buy what you really want ...That is the # 1 lie many dealers tell consumers with blemished credit whom are getting jammed with a vehicle they really dont favour along with interest rates 15% to 29% and most likely any other after market the business manager can profit from
EXAMPLE...You buy a car $ 12000. with little or no down payment with a 60 month term you return to dealer after one year having made payments on time and lets assume your credit score has improved a notch I say assumed becauce 99% of the time it has not, Take away from the $ 12000. taxes - dealer profits - vehicle depreciation ( if you got sucked into an extended warranty your on dead row) my guess is your trading a vehicle worth about $ 6000. and with the high interest you been paying you still owe over $ 10.000. that is about $ 4000. negative.
It gets worse, drive the same car 3 years and you will owe about $ 6000. on a car thats worth $ 1000. or less.
Every dealer will claim to be the best and will get you approved, you seen the adds
Bankrupt...Collections...100% approved call now...Guaranteed credit approval...Have credit issues...Need wheels...Judgements...Have a job, your approved...Been turned down elsewhere...New job...Slow Credit...Loan defaults...Owe to much on trade...24 hr hotline...We get you approved...New to country...Phone or internet approval within hours...Bad credit no credit...New to country...Approvals from $.0.00 down and 0% interest rates...Divorced-Seperated... Have a Job ? Steady income ? Stable residence YOUR APPROVED
But the sad truth is dealers deal with high volume, and how they really think...if you throw enough sub-prime credit applications agains the wall something will stick, even if its only 10% it will cover all advertising and still show a huge profit.
Many advertisements by dealerships will have a Hot line phone # for bad credit or ask for ***** dont you for a moment belive that makes them experts getting you approved...no its the complete opposite, you make contact this way and before you even cough they know your calling about bad credit. EXAMPLE...you phone and ask for Mary - thats the code name for bad credit enquiry or the special phone # your calling will be turned over to the dealers credit specialist, he/she is called the specialist because they got absolutely no compassion, and trained to make huge profits, and you will stay burried forever should you make contact this way. I will be adding techniques how the dealer specialist deal with you...(bookmark site )
For you to get approved the lender will run a credit report ,if you have been to 5 other dealers or online lenders and been turned down each inquiry will show on your credit bureau and the more inquisitions on your report card the less likely the current lender will approve you, its like saying to the loan officer whom has to make a decision why should i put my job on the line when the guys down the street did not , its vital you hook up with the RIGHT lending institution without to many credit checks
