If you have bad credit, you should be wary of vehicle advances. Not only do these loans tend to charge higher interest rates than cars with good credit, they may use yo-yo tactics to keep you from paying your loan back. They may even make your loan terms conditional, meaning that you can have to wait weeks before you can actually get approved for another loan. As a result, it is important to stay on top of your bills and build your credit score before you apply for a vehicle advance.
Another thing to be aware of when considering a vehicle advance with terrible credit is the type of lender. Nonprime buyers are more likely to encounter lending contracts with add-ons that do not serve their needs. These add-ons will raise your insurance rates and cause your credit to decline. Therefore, it is important to be cautious when applying for a loan or trading in your car. Here are a few tips for you to avoid getting ripped off.
First, it is important to be aware of the dealership. Beware of dealerships that have “anyone finance” signs. These dealerships are likely to charge high interest rates and may not be willing to negotiate with you. Second, the dealership may have aggressive repossession policies, which can really mess up your credit. Ultimately, a car without a car is better than one with bad credit. It is always better to pay full price before you get into a vehicle loan.