auto

Getting a bad-credit loan for a car

Trying to get a car loan with bad credit in this market can be like pulling teeth. With the subprime borrowing market still in a whirlwind, your tarnished credit can really put a damper on your mobility. But there are still some simple things you can do to make your credit more appealing to potential lenders.

Check your credit history

The first step is to check your credit history and fix any incorrect information. Fixing faulty information can greatly improve your score and get you qualified for a better loan. You can receive three free credit reports per year from the three main credit reporting agencies: TransUnion, Experian and Equifax.

Be consistent

Moving up to a better interest rate might take some time, but it's not impossible. By simply paying your bills in a timely fashion, paying more often and paying off some credit, you can start to improve your credit score. It may take a while, but the rate you'll get on your car loan after your credit gets a tune-up could be worth the wait.

Speak with lenders about bad-credit loans

It doesn't hurt to talk to lenders about where you might fall in their tier of interest rates. But don't just stop at one lender -- shop at any institution where you have existing accounts. Banks and credit unions are more likely to give a better loan to a longtime customer. Use Bankrate's auto loan finder to locate loans in your area of the nation.

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Tara Baukus Mello

Check credit before auto loan

The news that an auto finance company distorted consumer credit records for years is a good reminder to check your credit report regularly.  ... Read more


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