Help Me! Bad Car Loans Have Ruined My Life!
When you are sitting across from the credit manager at the
dealership and only a few feet away from the car of your dreams,
you really want to believe every word he says. But if you have
poor credit history, you know there is no way to get that shiny
new car through a bank loan - and he knows it, too! You may not
have thought a new car loan was possible because of a couple of
bad decisions made in the past - so when the credit manager says
"you're approved", your heart begins to race!
Suddenly you start to imagine yourself taking road trips and
having one adventure after another - and the last thing on your
mind is the interest rate on the car loan. Before you know it,
you are driving off the lot in your shiny new car thinking that
you pulled one over on those fools! Three months later,
surviving off of peanut butter and saltine crackers, it hits you
- car loans financed through a dealership are evil!
But what can I do?
Well, after sticking the voodoo doll with a few more pins and
hoping that the credit manager feels it, you need to start
thinking about how to refinance the car loan, bad credit and
all. But it isn't easy to refinance a car loan with bad credit,
is it? Truthfully, you may not be able to do so - for awhile...
So I was right--bad car loans are the end of the world, aren't
they!
Now now, pilgrim - just breathe. While you may be in deep
trouble at the moment, all hope is not yet lost - but you may
have to get used to those crackers and peanut butter for awhile.
What you cannot do is panic, or throw your arms up in despair.
Bad car loans happen, and they happen to people with bad credit
more often than you think. But bad car loans can be fixed by
improving your credit, so make sure to pay everything on time -
for at least six months. I don't care how disgusting saltine
crackers become during that time, do not miss any (any!)
payments!
OK, I have lost fifteen pounds, but I have paid my bills on time
for six months--now what?
Now, you get smart. You need to shop around online for a place
that refinances bad car loans. After building your credit by
making the payments on that bad car loan for the past six months
(and all of your other bills, too!), your credit rating should
begin to improve and options will start to open. You do not want
to refinance your car loan with the same bad credit you had when
that credit manager lured you in six months ago, because you
probably won't get a better rate anyway. But, if you have been a
good boy or girl, and ate all your crackers and paid your bills
on time, you can probably find a better rate now on a new car
loan. And potentially save yourself thousands in the process.
Now, don't get me wrong, it may take longer than a year to find
a rate on a car loan that will make it worthwhile to refinance.
Even if it takes a year to get your credit rating to a better
place, be patient. On a five year car loan, an interest rate
that is even 1% lower can save you a bundle over the next four
years. Just take your time, and shop around before signing on
the dotted line when refinancing that bad car loan. You don't
want to go back to eating crackers, do you?