SOME HELPFUL ADVICE ABOUT AUTO LOANS (AND AUTOS TOO)
Where to start? How about with your own credit situation?
1. First and foremost, get a copy of your credit report.
You'd be surprised at how many people ignore this simple piece of advice, but they do.
Sites such as http://www.ftc.gov/bcp/conline/pubs/credit/freereports.shtm offer a wealth of facts for the consumer, including how to get your report for free.
2. Find out your score.
If it's low enough (say, under 600) then STOP applying for any loans as each rejection will damage your score even more. Apply only with low-credit auto loan specialists such as this site.
3. Find the car for you.
Once you've researched your credit history, start looking up information about the car you want, and the rate you want to pay for it. The latter you can do at www.myfico.com.
TIP: Be realistic about your credit standing -- very few people have credit scores high enough to qualify for "zero-percent financing." Also be real when it comes to the money you'll be able to borrow, as $10,000 is the high point for most people with low credit. If your credit score is low, research autos in the $10,000 neighborhood -- you won't be disappointed later.
4. Now you're ready to talk to the dealer.
Be confident, and keep things simple. A good way to do that:
5. What do you do with your old car?
Before you fall for the dealer's "trade-in" offer, try selling your old car yourself. If you can, chances are you'll come out ahead on the deal.
6. Now comes the key: down payment.
Generally the more you can put down, the more respect you'll be treated with. Anything less than 20 percent puts you behind the game before it even starts; 30 percent or more gets you the best possible rate.
To sum up and repeat: know as much about your credit score before you go looking at cars and rates. The Internet makes it simple.
Where to start? How about with your own credit situation?
1. First and foremost, get a copy of your credit report.
You'd be surprised at how many people ignore this simple piece of advice, but they do.
Sites such as http://www.ftc.gov/bcp/conline/pubs/credit/freereports.shtm offer a wealth of facts for the consumer, including how to get your report for free.
2. Find out your score.
If it's low enough (say, under 600) then STOP applying for any loans as each rejection will damage your score even more. Apply only with low-credit auto loan specialists such as this site.
3. Find the car for you.
Once you've researched your credit history, start looking up information about the car you want, and the rate you want to pay for it. The latter you can do at www.myfico.com.
TIP: Be realistic about your credit standing -- very few people have credit scores high enough to qualify for "zero-percent financing." Also be real when it comes to the money you'll be able to borrow, as $10,000 is the high point for most people with low credit. If your credit score is low, research autos in the $10,000 neighborhood -- you won't be disappointed later.
4. Now you're ready to talk to the dealer.
Be confident, and keep things simple. A good way to do that:
a) Decide on the total price of the new car first, and then the length of payment (in months).
b) Once you've established the price you want, you can stretch payment out to as many months as you need.
b) Once you've established the price you want, you can stretch payment out to as many months as you need.
5. What do you do with your old car?
Before you fall for the dealer's "trade-in" offer, try selling your old car yourself. If you can, chances are you'll come out ahead on the deal.
6. Now comes the key: down payment.
Generally the more you can put down, the more respect you'll be treated with. Anything less than 20 percent puts you behind the game before it even starts; 30 percent or more gets you the best possible rate.
To sum up and repeat: know as much about your credit score before you go looking at cars and rates. The Internet makes it simple.