Bad things happen to good people and, as a result, good people sometimes have bad credit. While a low credit score doesn’t mean you can’t be trusted, it can make it hard to borrow money from most credit institutions. But everyone needs a form of transportation and even those with the lowest credit scores need to get around. So, how do you buy a car with bad credit? The following tactics may help some of those good people with bad credit to pick up a great ride.

Improve Your Credit Score

Credit scores are fluid numbers. Just as they can go down when you fail to make a payment, they can go up when you resolve outstanding issues. To start making those types of positive adjustments, begin by downloading a copy of your credit report. Then fix any errors, file necessary disputes, and otherwise remedy the negative items that you find.  Then, be vigilant about your bill payment schedule for a significant period of time. By paying on time for a sustained period, you can improve your credit worthiness in the eyes of the major credit bureaus.

Shop Lenders

Don’t just assume that you won’t be able to get an auto loan, even if you were rejected by a single lending institution. Different lenders take different approaches to high-risk lending. Some institutions will stay away from it altogether while others will embrace it as a part of their culture and strategy. Also, you will likely find a variety of rates being offered, which represents another advantage for shopping around. In your search, be sure to include a trustworthy car dealership and your own bank or credit union. Companies with which you have an existing financial relationship are more likely to trust you as a borrower.

Buy Smart

You may have made a few financial mistakes in the past, but that doesn’t mean you’re not capable of making a smart financial decision. Study the numbers—monthly income, monthly expenses, interest rates, etc.—and make a wise decision about the level of car that you can afford. If you’ve got bad credit, you should probably be looking at budget-friendly options to keep your monthly payment down. Selecting a lower-range car will make it easier to obtain credit because the lender won’t be taking on as much risk, both in terms of total loan amount and your ability to repay.

Bad things may happen to good people, but fortunately, good things are also possible for people with a bad credit score. With a little bit of knowledge and a lot of discipline, even those with poor credit can find reasonable financing for a new or used car purchase.

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