If you find your self wondering how to get a car even with bad credit history, then this article is for you. Having a bad credit history means that you have had difficulties in the past to maintain good credit. This is a red flag to future lenders that you are trying to get to say "yes" to your car loan.
Unfortunately, a lower credit rating gives you less room to negotiate the terms and conditions of your car loans. Depending on the severity of your credit, you may be limited to what kind of car you qualify. It can be difficult but not impossible, to find a lender who is willing to take the risk of a client who is a high risk of potential default and recovery.
It is likely that with a bad credit history, you are stuck with a higher interest rate. Do not take it personally. It's just business, the lender is trying to protect in the event of default on the loan. You best move in defense of this is to start now to save for a large down payment, with the goal of 25 to 50 percent of the total purchase price. The more money you can put the power of negotiation that is more on getting the lender to say "yes."
Gather all your financial information into a complete personal financial statement. Collecting data on income, all financial obligations and what are your fixed expenses each month. Decide how much you pay for your car based on your income and expenses. Make sure you can easily afford the monthly payment, insurance and maintenance. Its aim is to show the lender or loan officer that his poor past credit history is not a reflection of their current situation.
His job is to convince the lender that you are a good risk and are responsible enough to repay the loan. Be sincere and honest when talking to the lender. If you have bad credit due to illness, established work, divorce, etc. or a foreclosure, then by all means explain what happened. Let them know that was the past and is in a better place now, rebuilding his life and credit history. Go with a positive attitude and confidence. You're selling the lender that you are responsible and able to repay the loan.
Once you get approval and get your car, make sure your payments on time or before the due date. This way you can rebuild your credit and build confidence and trust with your lender for future business.