Who Can Be Classified As a Borrower With Bad Debt?
If a borrower’s credit score falls below 580, that will be indicated as bad credit and would be treated differently. As a borrower with bad credit score, you are not entitled to interest rates as low as 2%, because they see you as having the very low financial capacity, and less creditworthy since such borrowers pose a greater financial risk to them. This credit status can be acquired by having a history of not redeeming your loan on time, not having credit history for an adequate period of years, having a history of identity theft, bankruptcy or any other financial crises in the past.
Good News for You!!!
In Dallas, there seems to be an exception of the great rule that all borrowers with bad credit will pay high-interest rates on the car loan you choose. With the following steps, you can get a car loan from an auto dealer or financial house in Dallas, and drive the car of your dream.
1. Examine Your Credit Record
Do not take the word of the dealer or lender that you have a bad credit score, on the face of it. Take a closer examination and see for yourself if you truly have a bad credit score.
2. Shop Across Car Lots
Just because you know or you have been made to believe that you have bad credit doesn't mean that you cannot get a car loan in Dallas. Do not be discouraged. Check across various car lots, study the various rates charged by lenders and have the information with you always.
3. Apply For Short Term Loans
Choosing a short-term loan plan will mean you paying bigger sums in fewer months, and streamlining your payments into fewer months, means paying lesser interests.
Don’t let your bad credit record prevent you from owning a car. All you have to do is keep the search across the car lots on, and when you eventually see a lender willing to give you a loan despite your bad credit, get a cosigner or guarantor, who will guarantee your repayment of the loan, by making the payments if and when you fail to do so. This will improve your credit score.
Learn more about auto finance from https://en.wikipedia.org/wiki/Car_finance.