If you think having bad credit means you can’t buy a great car, then think again. In fact, credit is a lot more complicated than merely being labeled as good or bad. At McCafferty Langhorne Special Financing, we help drivers from Philadelphia to Levittown get the car loan they deserve for the new vehicle they need.

Research Your Credit

how to get a car loan with bad credit levittown pa

To help you get a car loan with bad credit, the first thing you’ll want to do is find out just what condition your credit is in. You can receive your three credit reports for free at AnnualCreditReport.com every 12 months. These reports outline your credit history and can help you spot errors that may be negatively affecting your credit. After that, visit MyFICO.com and purchase your FICO scores.

Negotiate for the Best Deal

Don’t let your poor credit scare you away from getting the best deal possible. Settling for a subprime loan could leave you with terms that are less favorable than what you actually deserve. So do your homework and determine what kind of terms you think you can achieve and then shoot higher than that when negotiating with the banks.

Shop Around

When you’re looking for a car loan, asking only one lender may not be the wisest decision. Not only could they reject your application or terms, but you also could be missing out on a better loan agreement from another lender.

You should also consider having a co-signer join in on the contract.A co-signer is someone who signs the loan agreement with you so that the lenders will be more willing to provide you with a loan. However, both you and the co-signer are now responsible for adhering to the terms of the agreement, even if the co-signer never drives in the car.

Don’t Overlook the Terms

The APR, or annual percentage rate, is the cost of the loan expressed as a percentage. This percentage can be negotiated and should be set as low as possible. You should also try to avoid excessively long loan periods. Though the minimum payments are often much lower, you’ll actually pay more in interest overtime. Find a car that fits into your budget and meets all of your needs while trying to stay away from more expensive models that may be more than you can afford.

Be sure to read the agreement closely and keep an eye out for a loan that requires the purchase of non-essential products such as extended warranties or service packages. And make sure that all of the terms in the agreement are final and set in stone.