Even with a bad credit score it’s important to be informed and make the best decisions related to your auto financing. Here at Broadway Auto Credit we want to help you make the best decisions and get the best rate. With a solid auto loan you can build your credit, but it’s important to pay attention to these three basic car loan tips for financing you can pay off right away.
Don’t finance for more than you can afford
One of the last things you need coming out of a bad financial situation is another black spot on your credit score, and nothing will put one there faster than missing a monthly payment. While it might be tempting to get a vehicle outside of your price range, you are better off going to a financial institution that will treat you well and get a rate you can afford.
Planning to haggle? Focus on the price of the car, not the monthly payments
It’s tempting to come to a dealer with a flat number that you can afford to pay each month, but it’s best to keep that under your hat. When looking at new-to-you vehicles, set out to get the best payment plan that you can. Ideally that would be a short financing term with monthly payments below your maximum limit.
Know your credit score before you ever step on the lot
Knowledge is power and it’s important to go in to any purchase with the most power that you can. After all, financing payments are going to be affecting your life for months to years, and you want to make good choices right from the very beginning. Even with things like bankruptcy in your past, your credit score might be better than you expected. You can find out your credit score for free many places, and then you will have a better idea of what kind of loan you will be able to take out.