Your credit affects many aspects of your life, perhaps even more than you realize. Consumers with significant negative marks on their credit report and a low credit score will likely have more difficulty securing a new line of credit, renting an apartment, and avoiding high interest rates on loans and credit cards.
Poor credit also makes it difficult, and sometimes impossible, to secure an auto loan. If you find yourself in this position and are trying to purchase a new vehicle, you may be tempted by dealerships that advertise, “No credit, no problem!” These dealerships finance loans “in-house” and often carry extremely high interest rates when compared to loans from banks, credit unions, and other lenders.
Shop Around for an Auto Loan
Before agreeing to a loan with one of these dealerships, be sure to shop around and see if there is a bank, credit union or other lender who is willing to loan to you. An auto loan with high interest rates, like those that typically come from buy here – pay here dealerships, may not be worth it; the cost of the loan could outweigh the benefit of purchasing the vehicle. Learn more about steps to take to secure an auto loan.
Obtain Current Credit Reports
Before visiting the car dealership, it’s important to check your credit reports. If you discover errors on your report, address them before seeking new credit. You do not want to risk denial for a loan, and possibly a drop in credit score, because of these errors.
Send your written dispute to the credit bureau and the creditor. Request the listing on your report be corrected. Once your report is accurate, shop for the loan that offers you the best terms.
Seek Legal Advice
Flitter Milz is a consumer protection law firm that represents people that defaulted on auto loan payments and had a vehicle repossessed. Contact Us for a FREE legal evaluation of whether the lender or repo agent violated the consumer protection laws.