How I Got A Poor Credit Auto Loan, And How You Can Too
You can get poor credit auto loans, even after foreclosure and bankruptcy, they can be expensive, and I will explain this and show you how you can get a better deal if you clean bad credit.
After being laid off 2½ years ago I went through foreclosure as it took too long for me to find another job. All of my creditors were hounding me constantly, and I even lost my Jeep to repossession. I had checked into bankruptcy to end the constant nagging but I could not afford it. After finally getting another job I was able to pay for the bankruptcy. Not long after that I received a poor credit auto loan. Now I will tell you how I did it and how you too can accomplish this.
Payment history; since our payment history is the most important to our credit I applied and received a credit card after the bankruptcy. I made small purchases and made my payments on time rebuilding my current history. It is imperative you make your payments on time if you want to get a poor credit auto loan.
Pay down balances; paying down your account balances is the 2nd most important in improving your credit. I only had the credit card so I made on time payments and kept my balance very low.
Showed financial responsibility; I saved money for a down payment, this helped show I was responsible with my money.
Other referrals; I got a referral from my landlord that showed I was paying my rent on time even through my layoff period. You can also get referrals from your Phone Company or utility companies. Anything you have that shows on time payments will greatly help in getting a poor credit auto loan.
After only 5 months of rebuilding my credit I went to a well know established dealer that has a special department the works with customers to get poor credit auto loans. I explained my situation and was granted my loan. As I expected the interest rate for my loan was 19%, but I had my car.
One thing I did not know about is we can put a 100 word statement in our credit files. With this they would have seen my explanation as soon as they saw my poor credit and I would not have had to do so much explaining myself.
By making your payments on time, paying down your account balances, being financially responsible, collecting referrals and being prepared to explain bad credit, you too can get a poor credit auto loan.
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