Having bad credit is something that one should not be ashamed of. Whatever is the reason why one has bad credit, the good news is that buying cars is not an impossibility despite having this situation.
What is a credit score? A credit score is a tool used by credit grantors to determine your ability to repay your debts. The information in your credit report is compared and evaluated against tens of millions of other consumer credit reports which gives you a credit score or number ranging from 350 (highest credit risk) up to 800 (lowest credit risk).
A good credit score means you are less likely to make late payments or default on the credit extended to you. Your credit score will change as the information in your credit report changes over time.
Having a low score impacts your interest rate. Like I said, you can still make car purchases despite your bad credit but, and it's a big but! You cannot expect to get a low rate auto loan with a low credit score or FICO.
Buy a Car And Establish Your Credit
Since you can still buy a car even with a low FICO score, this opens up a good chance for you to make good on that purchase.
1. Make your monthly car payment on time to improve credit score .
2. Making your payment on time establishes your credit.
3. Establishing your credit raises your credit score.
4. Raising your credit score gives you the ability to lower your interest rate on whatever purchase you make including the biggest purchase you can make - your home.
The biggest reason that lenders can afford to make you that loan is because they can repossess that car that you just bought if you miss your payments. Remember that!
It is recommended that you try 1-800 Auto Yes for bad credit car purchases. Why? They help thousands of people each and every day, even those with severe credit problems or no credit at all.
Let's face it: some people end up with unfortunate circumstances due to events beyond their control. Divorce, a lengthy sickness which can be exacerbated by lack of medical insurance, loss of job, failure in business all can trigger financial problems. There's another online service which offer resources that can help you make bad credit car purchases possible.