Did you know you could get a loan to buy used car no matter how bad your credit is?
Despite the credit squeeze, there are plenty of financial institutions willing to underwrite the credit from used car dealers, who then make the finance package available to you. The only requirements: you need to buy the vehicle from their yard.
Sure, you'll pay an interest rate on your loan 2-5 percenatge points higher than the "regular" loan offered to people with high credit score (700 and above).
But, for many with bad credit rating, this is the only way to purchse a car they need to commute to work. If you credit file is particularly bad, the delaer will ask you for a higher deposit paid upfront, as this will reduce the risk to the lender, should you default.
With very few financing options available to bad credit risk individuals, this form of finance is the most preferred one. Alternatively, you can save more money and buy your car for a cash. But, even though used cars are quite cheap, it'll take you some time to save the amount needed.
