If you need to purchase a car at this moment, don’t let bad credit rob you of a good deal. Even if you have less than perfect credit score, you can still negotiate for a better deal. In this article, let’s talk about the preparations that you can do to make the most out of a bad credit car loan.

Check your personal credit report. Order a copy of your personal credit report from the three major credit bureaus. This way, you can examine your report and make sure that it is free from errors or false charges which could be hurting your score. If you haven’t yet received your free credit report this year, you can make the request from AnnualCreditReport.com.

Knowing where you stand with your credit rating is essential as it will protect you from predatory lenders or car dealer financers who may try to make you believe that you have a much lower credit score and that you don’t deserve a low rate. Don’t let anyone tell you what your credit score is. See for yourself!

Compare auto loan rates. Acquire free car loan quotes online so you can compare offers from different lenders. However, when gathering quotes, make sure that you are not being asked to enter too many details in exchange for a free quote. Remember that quotes are just estimates, not the exact offer that you will get. The actual rate and monthly fee may change, once the lender evaluates your auto loan application. If you can negotiate successfully, you might be able to reduce the initial interest rate offer.

Watch out for predatory auto loan dealers. There are auto loan dealers that offer bad credit financing as well. Since there is a great demand for bad credit card loans, it is an effective way to increase their monthly sales quota. Nonetheless, consumers must be wary against bad credit auto loan dealers who may offer quick financing in exchange for expensive rates and fees. If you want to check out dealer financers, you need to be very cautious especially when trying to negotiate.

Check out Credit Unions. If you need a car loan but with bad credit, check out programs offered by credit unions first as these organizations have been created primarily to assist consumers with their financial needs. You are most likely to get a low interest rate car loan from a credit union than from commercial lenders or car dealer financers.

Come prepared. IT’s crucial to come prepared before meeting a potential lender. Jot down important notes you’ve made while doing research and comparison. Don’t forget to bring a photocopy of your personal credit report so you can show a potential lender that you are aware of your credit history and credit score.

Politely explain the circumstances that lead to your bad credit history. Stress the fact that you have been taking positive steps to improve your score and regain your good credit standing. If a lender can see that you are sincere and doing your best to protect your personal credit, you are more likely to be given a good deal despite having bad credit.