Avoiding Very Bad Credit Auto Loans

Is getting a very bad credit auto loan the right thing to do? Probably not. As awful as it may sound, people with a very bad credit rate have the car lending high risk stamp on their loan application even before they begin to fill out one! Will you still get a loan with a bad credit rate? Sure, but are you willing to get an auto loan with an APR of about 21-25%. Probably not.

A lot of people try credit counseling services as a means to help them improve their money management skills but the basics are really easy. Awareness of your own credit standing, your spending habits and a little frugality can set you on your way to better credit rates in no time.

1.  Don’t guess, KNOW. Contact credit bureaus and find out what your credit score really is. Knowing helps you focus on how much work you need to do improve your credit rate. Also, your credit report may have errors so now’s the time to correct them.

2.  Pay your bills on time! If you can, pay a bit more than the minimum amount due.

3.  Never max out your credit limit! If possible limit charges to only 50% of your credit limit.

4.  Establish stability. Stay at your place of residence longer than six months.

Written by: Katrina Marion

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