Buying a Used Car with Bad Credit
It is very hard to buy a used car when you have terrible credit. However, it is not impossible. Many people have bad credit right now because of the pandemic. If you have bad credit, due to divorce, previous bankruptcy, or unemployment, the situation isn’t hopeless. Here is some information you need to know about buying a car with bad credit.
Tips for Buying a Car
First, you may think you have bad credit, but you need to know your credit score. You may actually have fair credit. You can check your credit score by getting your score from each of the three credit reporting bureaus: Transunion, Equifax, and Experian. Credit scores are anywhere from 300 (really bad) to 900 (perfect). If you have a credit score below 579, you have bad credit. When you know your credit score, you are in a better position to negotiate with lenders.
Next, make sure that you are buying a car you can actually afford. One reason your credit may not be perfect is because you had a higher car taste than your wallet allows. This is a great time to look at used cars. Because new cars depreciate so rapidly, you’ll be able to buy a good used car, which lowers your payment, as well as the amount you’ll pay over time.
You will need to do your research on the car you want to buy. Look for cars that fit your favorite car type. If you want an SUV, for example, you can begin to look for a car you want on used car websites. Research the favorite year for your car, and the years your car got the highest rating. Find the best car for you, and then you can begin searching the inventory at local car dealerships until you find the exact car you want.