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Home » Business And Finance Articles » A Car Loan For People With Bad Credit

A Car Loan For People With Bad Credit

Most banks have strict policies about whom they will lend their money to and for what the money will be used. They will not grant you a car loan for a used car which is older than five years. They charge higher interest rates on loans for used cars than on loans for new cars. And very rarely do they grant loans to people who fall under the "subprime" category.

A person who is considered a subprime borrower is one who has a blemished credit history. He may not be paying his bills on time or he may overextend his credit card. A subprime borrower is usually someone who has a credit score below 620. If your loan application has been rejected on the grounds that you belong to this credit-unworthy group, does this mean that you cannot borrow anymore?

You may still get a car loan if you will look for lenders that grant financing to subprime borrowers. Avoid finance companies that advertise "1.9% interest**". Notice the sign (**)? Below the big ads, written in fine print, the ** means for prime borrowers only or for people with excellent credit. Clearly you do not belong to this worthy group. People with bad credit will have less privileges when getting a car loan. The interest rates are decidedly high. You may opt to search for online lenders. But there are measures you may take to improve your circumstances.

The first thing to avoid is to rely completely on the car dealer. He will always get a certain percentage out of car loan transactions. In fact, it will be advisable if you are able to secure a car loan before you allow a car dealer to be within a shouting distance from you. When you look for a credit grantor, don't accept the first one you encounter. Compare interest rates offered by lenders, but don't accept the average rates they give. A lender may offer a lower interest rate for a person with a credit score of 800 and a higher interest rate for someone with a score of 600. Ask for specific rates. You may also approach credit unions and banks where you have a current account.

You also have a chance to improve your "category" by checking your credit report and reforming your credit score. For example, there might be an error in the information found in your credit report. This error may have been the one responsible for the black mark on your credit history. You must immediately have this error corrected by informing the credit bureau in writing.

Credit scores can change. If you pay your bills on time and if you always stay within your budget, then your credit score will likely improve. Once you have a higher number, you may get a lower-rate refinancing for your car loan.

And here is another random article you might be interested in...

Common Misconceptions About Career Management

You get your clothes cleaned when they're dirty. You pay your bills each month. You see your doctor once or twice a year. You send cards to family-members at each birthday. So, why is it that most people (maybe even you!) don't integrate career management into their regular routine?

Most individuals have a reactive â€" not a "proactive" â€" approach to their careers. Thinking that you only need to "fix your career when it's broken" (i.e., when you're laid off, downsized or just plain miserable) is a very unfortunate misconception that will seriously limit your career success!

Here are 10 other common misconceptions about career management:

1. The most qualified candidate gets the job offer.

WRONG! Many times candidates with lesser qualifications get job offers simply because they've prepared and presented themselves in a more compelling way. In other words, they're better self-marketers! Being "qualified" is not enough. You must CONVINCE the employer that you're the best candidate for the job.

2. As long as I have a job, I don't have to work on my career.

WRONG! Even if you're employed today, you never know what may happen tomorrow! To avoid a career disaster, you should incorporate "Perpetual Career Management" into your professional life. Vital tasks like keeping your Accomplishment Stories up to date, or networking regularly with professionals in your industry, should be incorporated into your regular routine.

3. My professional education stopped when I graduated from school.

WRONG! You should always look for ways to advance your professional knowledge. Attending seminars, reading trade journals, pursuing certifications, etc. â€" these activities should be a part of your ongoing professional development process. It's imperative that every professional remain current in his or her field.

4. Employers always offer the most generous compensation they can afford.

WRONG! Employers expect that you've done salary research, and they anticipate dynamic negotiations. In fact, they'll often be disappointed and question your candidacy if you DON'T negotiate. Employers usually state a low salary offer merely as a "trial balloon," to see how you'll react â€" and there's almost always room to improve on the initial compensation offer.

5. If I just do a good job, my position will be secure.

WRONG! With corporate mergers, downsizings, outsourcing and a shaky economy, NO job is secure. You must take full responsibility for your own career security.

6. My résumé is the only document I need to search for a job.

WRONG! Your résumé is just one of the 10 "tools" you need in your "Job Seeker's Tool Kit." In order to land a quality position in today's market, you'll also need Accomplishment Stories, Positioning and Exit Statements, a Professional Biography, a Target Company List, and many other vital components.

7. Recruiters will find me a job, so I don't have to search for jobs myself.

WRONG! Although recruiters can be helpful, the most successful way to find a new opportunity in today's job market is through networking. It's fine to use Executive Search Firms, but they're just one vehicle for you to leverage. Only YOU can find you a new job.

8. Employers are responsible for managing my career path.

WRONG! This statement might have been true in our father's or grandfather's time. But now, it's "every man for himself." Only YOU have the power to take control of your career and manage it for success. So, make the most of it! Get support and guidance from a qualified Career Consultant if you feel that this would be helpful.

9. Networking is only for entrepreneurs and jobseekers â€" I don't need to network now.

WRONG! It's a smart career move to ALWAYS be networking, no matter what's going in your professional life. If you don't need help at this time, build-up your networking power by helping others. Consistent, effective networking will always pay big dividends! It's just a natural part of ongoing career management.

10. Most good jobs are listed on Internet job sites and in newspapers, so they're easy to identify.

WRONG! Only one percent of job postings that are on the Web or in newspapers are any good! And that's where you'll be competing against 99% of all the other job seekers! Since these odds are not in your favor, you should spend VERY LITTLE time on this search technique â€" and instead, focus almost all of your time and energy on networking!

Now that you're familiar with these deadly career misconceptions, you can easily reverse them to have a very positive impact on your career. The first step is to change your thinking, and then to practice productive new behaviors in a consistent manner!

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Permission to Reprint: This article may be reprinted, provided it appears in its entirety with the following attribution: Copyright © 2006, Ford R. Myers and Career Potential, LLC.

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