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More people than ever before have bad credit today, and most of them want or need to get a car loan at some point. But bad credit does not need to spell the end of the road for you if you are looking for a car loan. Although many of the traditional lending institutions still look only at the bottom line of your credit score number as calculated by the credit bureaus, there are many lenders who will take the time to understand why you have bad credit. These lenders understand that things happen – you get laid off from your job, you had unexpected and very high medical expenses, you were going through a divorce, and many more other valid and justifiable reasons for having bad credit. What they are interested in is determining if you have been able to put forth the effort to get your credit back on track. Getting a new car loan or a used car loan, or even doing car loan refinancing if you have less than stellar credit is not the huge problem it was only a few short years ago. The lenders who are willing to look at the circumstances behind your bad credit before they make a lending decision are the lenders who are getting a ton of business these days, because the number of people with perfect credit is dwindling more quickly every day. If you know you have bad credit, the most common sense advice that can be offered to you is to take steps, starting today, to get back on the road to recovery. Your credit score is not going to change overnight, but if a potential lender can see evidence that you are back on track despite whatever financial setback you had, that evidence will go a long way. The reason that evidence of getting back on track is important is simply because some people are a consistent credit risk. No matter who issues them credit or how much credit they have available, they abuse their credit privileges, they miss payments, and they do not realize the critical role that credit plays in their lives. You need to be able to prove to potential lenders that you are not this type of chronic credit risk. The difference in a car loan, even if you are approved, could be the difference between a six percent interest rate, and an interest rate as high as eighteen percent or more! If you have not been doing well with your financial obligations, start today to establish a good track record and start providing that proof that potential lenders will be looking for. Make each and every payment on time, and to be sure that your payment is posted to your account by the date it is due, be sure to allow some extra time for delays in the mail. Take particular care to make arrangements with and pay off any overdue or past due accounts, and keep your balance below your credit limit on your credit cards. In fact, the best credit scores are derived if you can keep your outstanding balance on your credit cards less than 30% of your credit limit. When you are looking for a car loan and you know you have bad credit, a potential lender will look at you more favorably if you are able to put money down on the car as a down payment. The more you can comfortably afford to put down on the car, the better your chances of getting an attractive loan and interest rate. The thought process here is that if you have money in your car purchase, you are likely to be more serious about this financial obligation than if you had financed 100% of it. If you need a car loan today and do not have time to wait for your work on your credit report to raise your credit score, you may want to take advantage of a sub-prime lender's car loan. The interest rate will probably not be very attractive, but at least you should be able to get the loan and will have your car. Then as you continue to work on improving your credit score, you can do a car loan refinance a few months later, when your credit score will be looking much better and you can get better car loan rates. For more insights and additional information about getting a Bad Credit Car Loan and to get a free car loan quote online, please visit our web site at http://www.car-loan-resources.com
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