If you have poor credit, then you may believe that buying a quality used car is beyond your means. However, you may have more options than you know. From bad credit car loans to finding permissive lenders, we want to show you how a few common myths about having poor credit may be keeping you from taking the first steps to owning a pre-owned vehicle.
Bad Credit is Forever
If you have charge offs or a past bankruptcy on your credit report, you may think that your credit is ruined forever and that no lender will ever see you as an acceptable risk, even if they offer bad credit car loans. However, even very poor credit can be improved by paying your bills on time and avoiding credit inquiries, which can lower your score. With a little work over the course of a year or so, you can improve even the lowest of scores.
You Are Not in Control of What You Will Pay
This is a common myth that might be causing you to put off looking for a used car. While the thought of being victimized by a lender because you are a bad credit risk can be frightening, there is less of a risk if you are an informed, flexible shopper. Get a copy of your credit score, know what it says, and be open to a variety of makes and models in order to have more than one loan option open to you.
Low Monthly Payments Are More Important Than Loan Terms
When browsing bad credit car loans, you may believe that lower monthly payments are the most important factor. However, this myth may push you into a longer, costlier loan. Consider the length of the loan as well as the payment amounts to see the bigger picture.
We hope busting these car loan myths help you become a more informed shopper. While a poor credit score may limit your options to a degree, a better understanding of the facts may