Do You Really Need A Bad Credit Car Loan?
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by: rrcole
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Word Count: 641
Date: Fri, 23 Sep 2011 Time: 9:51 PM
Many people who have bad credit believe that a bad credit car loan is the only way to go. Bad credit car loans have a lot of pitfalls that are definitely a cause for concern for people who want to improve their credit. Even looking around for a car loan with bad credit can cause your credit rating to sink temporarily. Should you end up defaulting on a car loan while you have low credit, you can safely assume that your credit will sink even lower. Moreover, most bad credit car loans have pretty high interest rates. There has to be some way to get a car without a bad credit loan, right?
Well, it is possible to get a car with bad credit, but without a bad credit car loan. However, you will need to do a lot of planning and a lot of thinking about whether buying a car without a bad credit car loan is for you. The way to get a car without getting a car loan is to pay cash. You will need to save up that cash, or find a way to earn enough cash to get your car. Ask yourself these questions before you decide whether a car loan on poor credit is the only way to go.
“Do I need a car RIGHT NOW?”
Sadly, a lot of the people who buy a car on bad credit do so even though they don’t need a car right that moment. Unless you will lose your job due to your inability to make the commute, you don’t need to get a car immediately. If you have any possibility to live without a car for a couple of months, you might be able to scrape together enough money to buy a used car, cash.
“Do I have any savings?”
A rainy day fund is a must if you have bad credit. Escaping a bad credit car loan can be just as easy as taking money out of your rainy day savings. Any savings that you do have should be used for an emergency, and not having a car is just as much of an emergency as you can get.
“Can I afford monthly payments on a car?”
Even if you need a car loan RIGHT NOW, if you cannot afford the monthly payments for a new car, you shouldn’t get a loan on poor credit. After all, buying what you cannot afford is what caused you to get poor credit in the first place. Try to use the bus or the train instead.
“Are there any company carpools I should know about?”
If your company is large enough, there may be a carpool program that you could partake in. A carpool can help reduce traveling costs while giving you enough time to save up money.
“Can I borrow someone else’s car for the time being?” Sometimes, you might have a roommate or family member who is willing to help you out by letting you borrow their car. This can be a huge help if you don’t want to watch your already low credit score turn into a downright poor credit score.
“Do I have enough time to take a second job or start my own business?”
You don’t have to wait months for your company to give you enough money for a new car. You can work a couple of hours a day every day in order to earn the money much more quickly.
Obviously, there will be some people who will have to have a bad credit car loan, and there’s nothing wrong with that. They are convenient, and they can help you put your life in order as you fix your FICO score. Still, if you have the option, you should try to avoid getting those loans.
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