Are you trying to get a car loan with bad credit?
If so, no matter where you live, you should know, first and foremost, that
getting a used car loan with bad credit isn’t really the “hard part,” meaning
the part that you should be worried about. No, in this day and age, thanks to
the internet and all of the opportunities that it offers, it’s not all that
hard to get a loan, no matter where your credit stands. What is hard, however,
is to be smart about that loan and to pay it off successfully, which is really
where you focus should be.
The 20% Rule
The general rule of thumb, when it comes to car loans, is
that you should never pay more, per month, than 20% of your monthly disposable
income. Fortunately, many lenders offer free calculators that can help you to
determine your monthly disposal income and to compare it to your estimated loan
payment, making it easy to follow this basic rule.
Down Payments
All lenders, whether you have good credit, bad credit, or
something in between, are going to require some type of down payment, and the
more you can pay, the better. The down payment goes toward the total amount of
your vehicle and can set you on a good repayment path if its high enough. Many
lenders are willing to accept down payments as low as 5%, but pay as much as
you possibly can at the given time for best results.
If you can keep these tips in mind and just be generally
smart and conscientious about your loan and its terms, you should be satisfied
with the “final deal” that you get.
No comments:
Post a Comment