Making Bad Credit Car Loans in South Holland, IL Work For You

 

First things first--don't assume that working with bad credit car loans South Holland, IL is always going to result in undesirable loan terms.  With a little effort, legwork, and creativity, you can have an impact on your car loan no matter what your credit looks like.  It sounds crazy, but even if you're working with poor credit there are ways you can actually save money.  The last thing you want to do is overpay for the next two to five years that you have a car payment.  Here are a few tips on making loans work in your favor despite having bad credit.

Bad Credit Auto Loans South Holland IL

 

  • A Rarely-Used Option That Lowers Interest

  • Clever Ways to Tweak Your Loan Terms

  • Starting Credit Management On the Right Foot

 

 

If You Can Afford It Up Front, Pay No Interest On Part of Your Loan

 

When working with bad credit car loans South Holland, the easiest way to save money is to find ways to cut back on the interest paid.  A not-so-well-known tip can actually net you substantial savings if you can afford it up front.

 

When you purchase any vehicle, new or used, there are fees that come along with doing so.  These fees can have a wide range of names, but regularly include both sales tax and recording/documentation fees.  The most common practice used by South Holland drivers that are financing a car is for these fees to be added to the principal of the loan and paid off over the course of the loan's life.

 

In the end this doesn't have to be the case.  If you can afford to pay for these fees in cash when you purchase the car, the resulting savings in interest over the life of the loan will far outweigh your initial investment.  Even if you can only pay for one in cash, each of the bad credit car loans South Holland will benefit from every little bit.

 

Getting Creative With Loan Terms

 

Contrary to popular belief, you actually have a decent amount of control over the terms in your bad credit car loans South Holland, IL.  Two specific methods to tweaking your loan terms are pretty simple to do and can make a big impact.

 

First off, South Holland drivers should know that changing the year of the vehicle they're looking at buying might impact the loan terms.  A typical situation would be that the bank is offering a 6.6% interest rate for up to 36 months on a 2010 convertible you like.  However on 2011 and later models, the interest rate drops to 4.9% for up to 60 months.  If a bit more searching can find you a similar convertible with the right price but a later model year, you'll save a lot on interest over the life of the loan.

 

Another option is for those using bad credit car loans South Holland that can afford a bit more monthly payment than what their loan dictates.  If you ask about shortening the loan length, even by 6-12 months, you'd again save big on interest.

Water Tower In South Holland

Credit Management 101

 

Without a doubt, dealing with bad credit can be difficult.  However it doesn't have to be a nightmare for South Holland, IL residents.  In fact one of the most common mistakes is to make assumptions about both what your credit report looks like, as well as what you're doomed to deal with as a result.  

 

You need to find out officially where your starting point is.  The easiest way to do that is to visit the websites of the three major credit reporting agencies--Experian, Equifax, and TransUnion.  Even better, www.annualcreditreport.com takes you through the process of getting your credit reports from all three.

 

This is a crucial early step when dealing with bad credit car loans South Holland.  Not only will it serve as the foundation upon which you'll build your search for loans, but it will also continue to serve you well into the future as you maintain your credit profile.

 

As you can see, there's no need to be intimidated.  Start today and make the best of bad credit car loans South Holland, IL.

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