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New Car Loans And Poor Credit

Maybe you are tired of driving your old clunker and getting another used car is of limited interest to you. I mean really: how many used cars are you willing to put up with before you realize that your cold, hard cash is being flushed away? Better to purchase a new vehicle that is under a warranty instead of a used vehicle that has a suspect past, right? Well, if you have poor credit, then the possibility of securing a new car loan seems like a remote possibility. However, even with poor credit a new car loan is possible. Read and we'll see what it could take to get you behind the wheel of a brand new car.

Circumstances in life have ruled that your credit rating is poor and your chances of securing new credit is low. You recently pulled your three credit reports and obtained your three credit scores to verify this point too. So, who might be interested in financing your new car purchase?

Well, you may be surprised to learn that several lending institutions including various financing arms of the automakers may be interested in meeting your needs. However, before you apply here are a few things you should know first:

A bigger down payment. Any loan is a risk and a lender may be willing to accept a larger down payment from you in order to underwrite your loan. Instead of 5% down, she may require that you put $3000 down toward the purchase of your $16,700 Chevy Cobalt.

A higher interest rate. Don't be tantalized by a low interest rate as they aren't for you. When your new car dealer offers zero percent financing, please realize that this rate is reserved for their best customers, those with excellent credit. Don't feel bad, even people with good or fair credit will not get the best rate, they'll pay a higher rate and you will too, if you are approved.

Shop around. Search the internet for new car lenders who may be eager to finance your purchase. These lenders will tell you that "bad or no credit is not a problem" and they may have a loan that you can afford. Make certain that you understand what your loan agreement is all about: you don't want to pay 13% for a new car when rates are less than half that rate.