How to get the right sub prime auto loan
Auto Finance Poor Credit No Credit loans are created for consumers who fail to meet qualification for traditional bank financing such as credit unions, financial institutions, and banks due to their low credit scores, previous vehicle repossession, recent bankruptcy, low income, or inability of producing specified down payment.
On average, the car dealers fund bad credit auto loans initially, which are then either sold or assigned to the particular car company. Pull your credit report. Knowing what’s on your credit report is very important.
However if sub prime credit is involved it is simply a must. Most dealers can supply you with sub prime financing alternatives, but the consumers that shops for their financing before they look for a car usually save money.
Make sure you have done a fair amount of homework before heading to a dealer.This prevents you from ending up at a dealership that is not equipped to handle your special needs. Next, try financial institutions that you've researched that seem to have a good track record.
"You really want to shop the prime lenders," says Michael Stegman, professor of public policy and director of the Center for Community Capitalism at the University of North Carolina-Chapel Hill.Many lenders now have subprime divisions. If you go in for a prime loan and don't qualify, they may be able to refer you to another part of the same company.Also, some lenders have community development requirements.
Another very important tip is don't give permission to just any auto loan company to access your credit report and credit score. Only give them permission if you like their offer.
The reason for this is because multiple credit inquiries made over a short period of time will lower your credit score.