There is a ton of information about how to buy car when you have poor credit. Some people claim you can’t get an auto loan. This isn’t true. In fact, there are bad credit car loans that make buying a vehicle possible. But that isn’t the only myth floating around. Listed below are a few others. Once you separate the myths from the facts, you can get the right car for the best deal.
Short-Term Loans Are Best
Generally, you will pay more interest with a long-term loan. Yet, financing the car for four or more years may work better for your budget. Always consider the overall cost of the loan and your monthly payments. Keep in mind, you can negotiate the terms.
You Can’t Get an Auto Loan If You Have a New Job
The fact that you started new work shouldn’t prevent you from obtaining a bad credit car loan. Lenders look at your total work history. They understand reliable transportation is necessary for maintaining steady employment.
Huge Down Payments Are Required
Bad credit car loans don’t require large down payments. Of course, the more you pay upfront, the better it is because it lowers your monthly car notes. Still, what you pay down has more to do with the loan terms and the type of auto you are buying.
You Can’t Be Pre-approved
Even though you have bad credit it doesn’t mean you can’t be pre-approved. Lenders consider factors in addition to your credit score. You have a better chance of approval based on you income rather than your credit rating. Although pre-approval isn’t guaranteed, it is worth pursuing.
The more you know about bad credit car loans, the better off you are. It takes some work dispelling the myths and identifying the facts. But once you have the right information, you can make the best decisions. Before you know it, you will be driving down the road in your dream vehicle.