While the economy is flat-lining, and the job prospects remain few and far between, owning a reliable automobile is more important than ever to the average hard-working consumer. Having an automobile is no longer considered a privilege, it is a vital necessity, with reliability and gas-consumption being the most prevalent and all-encompassing factors in maintaining a budget. If you happen to be among those millions of cash-strapped members of society with a poor credit rating, you might be under the mistaken impression that acquiring a better set of wheels is nearly impossible. Well, nothing could be further from the truth, because there are many banks and lending companies available to provide the consumer with a better means of getting where they absolutely have to be, and it certainly doesn’t mean wasting time at the garage repairing a budget-busting vehicle that would be better off sitting in a junkyard instead of the driveway.
Fortunately, for the folks who need an auto loan but happen to have bad credit, there are scores of lenders with new and innovative loan options out there. These cooperative and sympathetic institutions have adopted policies that allow them to be far more flexible in their loan approval policies, focusing less on the FICO score and more on the consumer’s ability to repay the loan, the length of time employed on the job, and the combined household income. Naturally, low credit rating will certainly affect the interest rate applied to the loan, which will likely be higher than one with a better credit score. The answer is to simply reduce the interest rate by coming up with a substantial deposit towards the loan. Exploring the option of a co-signer with a good credit rating is also a good idea. This will help considerably in ensuring a favorable loan decision.
Once the deal is done, and the loan proceeds have been allocated, this becomes the perfect opportunity to begin the process of rebuilding your credit standing. The most vital element now is to make the all important payments in a consistent and timely manner. This will increase your FICO scores, and will lay the groundwork for access to better loans with more favorable terms in the future, as well as being a positive step in rebuilding your financial freedom and stability.