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Good, Fair and Bad Credit Auto Loans

When it comes to buying a new car, you might want to check your credit score before applying for a new loan. Loans can be tricky, and some financial institutions can deny you. The last thing you want is to run your credit with a financial institution that has no intention of loaning you money when you don’t have a great credit history. Communication is key in securing an auto loan in today’s financial market. Below are just some of the ways you can get into a new or used car with good, fair or bad credit.


The Good News

Credit isn’t as hard to secure as it used to be with ‘not so great’ credit. Many companies offer loans specifically designed to help those with a bad credit history get back on their feet. Credit Unions are a great place to start if you have bad or fair credit. When it comes to good credit, your personal banking instution is a great place to go. The key, no matter what your credit score, is to talk to the financial instition before you let them run your credit. Discuss things like: what your credit score is, likely interest rates of loans, loan terms you can apply for, as well as the amount you are likely to secure.


Finding A Fair Deal

A great way to find a fair deal is to use an auto loan calculator. The online auto calculator at Cars.com is free and easy to use when you’re looking for a car loan. Simply adjust the length of loan, down payment and interest rate to see how each changes the amount of your payments. This is a great way to avoid letting a delearship run your credit multiple times; which can really take a toll on your score. The average run costs you 15 to 20 points. Running it once is fine, three to five can turn a fair score into a bad one in one day. Using the auto loan calculator can get you the information you need to take to the bank and talk with a personal banker before you run your credit just one time.


Getting Over Your Bad Credit

Bad credit can easily be resolved with a little bit of effort. Simply run a free credit check online. You might be surprised at your score. Next, understand what is affecting your score. Anything from delinquent utilities, to student loans, and even medical bills can effect your score. If it’s not perfect, it’s okay. Be sure to talk this over with a financial institution like a credit union that may have solutions to offer you. You could turn your credit around by simply paying off an old phone bill, and get into a new or used car in no time.



Putting Your Smartphone To Good Use

Your smartphone can be your best friend when securing a great deal on a car loan. Download the Cars.com On The Go app for your Android or iPhone. Take it to any dealership, scan the VIN of any vehicle, and you’ll get instant information about the price of the car on your phone. Save your top searches. Then take them to a bank to talk about a potential loan, rates, and interest. You’ll save big without even talking to a sales person.