In this article, we will take a closer look at what those with bad credit should do in relation to the car buying experience. Oftentimes people believe that there is no hope for getting either a new car or used car simply because of credit related issues. The good news is that this is rarely true, as car dealerships are very eager to work with the vast majority of car buyers with bad credit and can find ways to get virtually any driver back behind the wheel.
The Four Steps to Overcoming Bad Credit Issues
- Investigate Your Credit History
- Ditch the Assumptions
- Visit Your Car Dealership and Investigate All of Your Options
- Make Your Payments
Step One-Investigate Your Credit History
If you think that you have bad credit, you are probably right. But it doesn't hurt to pull your credit score. In fact, you can do this for free and find out for sure. On occasion, people discover that their credit scores are actually not all that bad, as they have taken steps over the years to slowly make improvements.
Here are some sources you can use to find your credit score:
TransUnion Canada www.transunion.ca
Equifax Canada www.equifax.com.
You can learn more about your credit score at the Financial Consumer Agency of Canada website: http://www.fcac-acfc.gc.ca/eng/resources/publications/budgetMoneyMgmt/CreditReportScore/CreditReportScoreTOC-eng.asp.
Step Two-Ditch the Assumptions
Just as you should check your credit scores, it is important to forget all about your assumptions regarding whether or not you can get a car loan. Again, car dealerships usually find a way to get car loans for those with poor credit. Why? Even if you have bad credit, car dealers know that making your car loan payments is a fantastic way for people to rebuild their credit scores. This means customers that are doubly motivated!
Step Three-Visit Your Car Dealership and Investigate All of Your Options
Once you have visited your car dealership, you will see that there are indeed a multitude of different options available to you. However, you need to go in and discuss your credit situation as well as the kind of car you want in person.
Step Four-Make Your Payments
Probably the worst move you can make where your credit and buying a car is concerned is to buy a car and then not make your payments. You can use a positive car loan history to significantly boost your credit score, but you have to make those payments and make them consistently.
What Goes Into Your Credit Score
- Your history of payments
- How much you owe
- How much of your credit you currently use
- Types of credit that you have
- Overall past credit experience
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