The Driving Woman - Car Loan Tips for Sub-Prime Borrowers

Car Loan Tips for Sub-Prime Borrowers

Nowadays when you hear the word "subprime," you think of the housing market. But subprime simply means that your credit isn't ideal, and it affects every loan you want to take out, including car loans.

What to do? You can get a car loan with bad credit; you just have to try a little harder. And you'll pay higher interest rates than customers with ideal credit.

Briefly, here are the steps you need to take:

- Check your credit report; see what your score is. There are ways to improve it, and quite often there are mistakes on the report that can be corrected.

- Don't rely on the dealer for the loan. There are plenty of other sources, including credit unions, banks, etc.

- Shop around. Different lenders have different rates. There are online sites to help you do this quickly.

For all the details and the "how tos,", see Tips for Subprime Borrowers. It's worth the time you'll take to get the best loan you can, no matter what your credit is like. And good luck!

Posted by Joanne Jan 31, 2008 5:50 pm

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Categories: Dealing with Car Dealers

Comments

ewilfong - Feb 1, 2008 7:57 am (#1 Total: 2)

Good tips. I think one of the biggest problems with buyers in this situation is that they feel so desperate to be approved, they'll take whatever the dealer is willing to offer. Dealers are all too willing to take advantage of a weak consumer.

researchqueen - Feb 4, 2008 5:00 pm (#2 Total: 2)

Los Angeles, CA

Totally, ewilfong. I really feel for the folks who don't know any better and grab the first thing, especially since it's rarely the best thing. That's what we try to do at Edmunds -- educate consumers so that they can make better decisions. I just helped both my brother and my father-in-law buy new cars, and I saved them both a lot of money. For those who have poor credit, it's even more critical that they become informed.