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Monday, May 20, 2013

Arranging Car Loan and Insurance With Bad Credit Record - Best Car Blog

There are a few areas to consider when you are trying to keep the cost of owning a vehicle low. The main ones are the purchase price, loan costs, insurance premiums and petrol consumption. Having a bad credit can affect at least two of these expenses. Of course, you need t
o consider the type of automobile you like and its condition especially when you are buying a second hand one. Requiring a loan to buy an auto may reduce your chances of striking a great bargain. Usually, being in a position to pay cash for it ensures a quick deal and you can get the attention of the sales person a lot quicker when you have the cash in the bank. If not, it is a good idea to find a lender to give you the loan you require first. Companies can give you a letter of confirmation that you can borrow certain amount with your financial position. This shows that you are serious and any offers you put forward is worth considering. When you have a bad credit history you can still get car loans. However, you may need to be prepared to put a bit more down payment and pay slightly higher interest. Unfortunately, missing several payments in the past or not having money to pay for some of your liabilities makes you high risk as far as the loan provider concerned. That is why they need to earn more from you to compensate for the higher risk associated with your application. Most auto insurers can now check credit scores before they determine the rates they charge for insuring a vehicle. Only few states do not allow such practices and most states have no problem with insurers snooping into your financial position. Apparently, companies won the argument with the legislators that such information is relevant in the calculation of premiums. Make no mistake; a lousy credit history can cost you twenty percent higher vehicle insurance premiums. Even when you are with an insurer for a long while, they may decide to put up the rates as soon as your credibility goes down a bit. Talk about loyalty and looking after long standing customers! Obviously, how much more you will pay depends on the carrier you are dealing with. There are still one or two companies that do not carry out credit check in the process of offering quotations. Therefore, it becomes extra important when you have less than perfect credit worthiness that you shop around carefully for car loans and insurance, home mortgage and credit cards. Those are all affected by your score quite much and can make thousands of dollars difference to your yearly spending. It is a good practice to get at least three quotes for those financial services products anyway regardless of your money troubles. Otherwise, there is a high chance that you will be leaving money on the table. Wouldn’t you rather you keep your hard earned cash in your pocket rather than handing over easily to huge loan and insurance firms?

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