Car has become the basic necessity of people, especially of those belonging to metro cities. Almost everyone dreams to own a car, as cars signify one’s social status and also bring convenience to people
when they drive cars to go to their destinations instead of opting for public transport. However, the ownership of a car can mean heavy responsibility because buying a car is not cheap. If you still insist to buy a car even though you do not have enough money, you may still own a four-wheeler by taking a car loan. People who have poor score of ratings on their credit cards may face difficulty in getting loans to finance their cars. These low scores mean that these people are late in repaying their credit card bills, and thus, it may be risky to lend money to these people to buy cars. This article discusses the several ways available through which you can finance your car even though you have a low score of credit rating.
The first way in order to finance your car is that you should pay off those accounts payable items on your bill as much as possible, so as to reduce the number of such items that you have to pay back. This is especially important for you to do so before you go to search for an appropriate car. By reducing the number of accounts payable items on your credit report, you help yourself to qualify to get a car loan. In this way, you may be able to get car loans more easily and also at a lower interest rate as compared to one who has many account payable items to pay, as it reflects that this particular person is rather risky as he or she may not be able to pay off his or her loan, and may end up in getting a higher interest car loan.
The next way to finance your car will be to ask your family or friends or even relatives to help you get a car loan. By doing so, you may be able to get a car loan that has a low-interest rate, and if you are able to pay off the monthly repayments on time, you may have a high opportunity to refinance the car loan without the help of your friend or family. This method can help you to save money on interest rates.
Further, you should also save money for a down payment. This may reduce your EMI. Also, the car dealer may develop faith in you.
The last way will be to stop revealing your credit rating to the different car sellers as well as banks, as this will further reduce your score of credit rating. You should thus only reveal and share your credit ratings score to a few car sellers and banks in which you are interested and not to everyone. As a result, your credit score will not be greatly affected.
These are the few ways through which you can finance your car.