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Car Buying Advice for People with Bad Credit
Written by paul on June 21st, 2008 with
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Read more articles on Car Buying.
There is plenty of car buying advice available in books and on the Internet. However, the bulk of car buying advice is for people with good credit. These persons can walk into a dealership and easily drive away in a brand new car. On the other hand, if you have a low credit score, bankruptcy, or recent foreclosure, it might be harder to get approved for an auto loan.
Here is car buying advice to help people with less-than-perfect credit:
1. Buy a Car to Improve Credit: If you want to quickly re-establish credit, buying a car is a smart move. Yet, you’ll pay a higher loan rate. If you can afford the higher rate and payment, a new or used car loan is one of the easiest ways to boost a low score.
2. Open New Credit Accounts: If you don’t want a high rate on the auto loan, apply for a secured credit card before getting a new car. It’ll take about six months to one year to re-establish credit. Make on-time payments during this time. Afterwards, you should be able to qualify for a reasonable rate on a vehicle loan.
Topics: Car Buying |
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