As a prospective car buyer with a blemished credit report, you may be wondering how you can become approved for automobile financing. The answer comes in the form of subprime car loans. If your credit score is below 620 and you have a history of making late payments, you are most likely a candidate for one of the many available subprime car loans.
You should be made aware of the fact that not all of these loans are the same. This means that you will need to do a bit of homework to find the perfect loan for you. Pulling your own credit report is a good first step to take because you should know just as much about your credit rating as the lenders who offer subprime car loans know. If you find errors or inaccuracies on your credit report as many people do, take the time to fix the problems so that your report is as clean as it possibly can be.
You also need to be very realistic about the type of car you are planning to buy. Instead of setting your sights on your dream car, think about buying a very sensible car that costs less and which has a good reputation for not needing many repairs. The subprime car loans you will be applying for could be your key to repairing your poor credit so do not buy a car that you cannot afford to drive. The last thing you want to do is to default on your new loan so use some self-restraint and common sense when deciding on a make and model to purchase จำนำรถยนต์.
Subprime car loans can be obtained from dealers but remember that a dealer gets a cut on all of the car financing deals that they land. This means that any loan a dealer manages to get for you through a bank or financing company is likely to wind up being more costly for you than if you would have contacted the lending institution yourself. It is therefore best to secure your loan before stepping foot inside the dealership.
Subprime car loans feature many different rates. This means that you will need to look around to see what deals are available. Many lenders define their business according to credit tiers so be sure to speak with loan officers regarding how each tier is linked to your credit score and interest rate. You can use the internet to locate lenders offering subprime car loans. Once you find a few websites that do, take the time to fill out the online application forms. Doing a bit of comparison shopping will go far in helping you secure the best loan out there and at the lowest rate possible.
Subprime car loans are specifically designed for people with poor or bad credit. It may be to your advantage to pledge some type of collateral when asking for such a loan as lenders look favorably upon borrowers who have collateral to offer. If you do not want to pledge collateral, you need to prove that you have a constant source of income that will allow you to pay off the borrowed amount of money on time.