admin August 10, 2012 No Comments

So you think that because you blew it once upon a time that you’re never going to be accepted for a loan again? And now you’re in need of a new set of wheels? What are you going to do? Do you have to sell nearly everything in your house that isn’t nailed down, including the cat, so you can raise the funds you need to get from A to B without hassle, or live on baked beans for a month?

Well, maybe, although your friends might object to some of the results if you do live on baked beans. Every little bit helps, especially when you’re trying to collect the funds for a deposit. But don’t sell the cat just yet  you might be able to get a loan in spite of having a less than stellar credit history.

However, as always, let the buyer beware. This doesn’t mean taking all the precautions that everybody should to avoid buying a right dunger of a car. You also need to be cautious before you sign on the dotted line for any loan. Don’t rush into anything, even if you think that this is your only chance. Trust on this  you’ll be better off taking the bus or biking for a few weeks than letting yourself in for years of financial misery.

One thing that you have to be prepared to put up with if you have got a bad credit history is that you are likely to pay interest at a higher rate than your friends with better histories. However, this rate shouldn’t be excruciatingly higher than the good rate  if the good rate is about 9%, then the naughty person rate should be around the 1112% mark, not 20+%. Ask the questions if you have to (or get us to do it).

And regarding questions, be sure to ask about anything that you’re not sure about.Clarify anything and everything  there’s no such thing as a dumb question when you’re trying to understand a loan, and if the person you’re dealing with disrespects your question or doesn’t answer it, walk away and take your business elsewhere. To take one example, if there’s something about the money going from your account to theirs when making repayments on the 30th of the month, what happens on February? Are you going to cop a penalty for being late if the payment comes through on the 1st of March?

One thing that you should never do is to agree to anything that involves a loan approval fee. This means that you have to pay to submit the loan application, whether if it’s successful or not. Guess how these companies make their money!Sure, most companies have a loan processing fee (paying the pen-pusher who does all the paperwork) if a loan is accepted, but a fee just to apply? Get real  and go somewhere else.

If you haven’t got the best credit history, don’t despair. There’s always hope and you can get a loan. Talk to us if you have any questions or if you want a bit of help. We’re here to help you get the best deal for a car loan.

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