Sunday, December 13, 2009

Credit Score and Car Loans

Credit score in a car loan would determine the interest rates which the loan applicant has to bear. It actually refers to the credit rating which is essentially considered by the loan agencies while approving the loan. Now what if you are suffering from a bad credit score? Do you think that your most cherished dream of owning a lavish car would shatter? Obviously 'no' would be the answer. These days people with bad credit scores can even access financial support.

In fact, there are certain tips to get a car loan with poor credit rating. Check them out:

. First consider your FICO rating:

The FICO score would basically range from 300 to 850. Now, the score would determine your rates of interest. Lower the score the higher the rates of interest. In such a case you can opt to wait for two to three months to enhance your scoring. Actually, if your score is below 600, then you must drop the idea of buying a car now. Have patience and consider the credit score in car loan to be a gainer in the long run.

. Be employed:

The lender would not only consider your rating but would also check whether you are employed or not. Actually, the main motive is to provide proof that you have the repayment capability. In most of the cases you lender would even ask you to submit a copy of your salary slips as proof.

. Seek the online support:

The online medium would help you greatly in getting car loan at best rates. Credit score in a car loan would also be definitely considered. But, browsing would definitely help you to check out the rates of numerous online dealers and avail the best rate which you can repay at ease.

. Apply along with Co-Borrower:

One of the most comfortable ways of getting approved for a bad credit score in a car loan is to apply along with a co-borrower. In such a case, if your co-borrower has good ratings then this factor would help to justify the rates of interest.

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