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Owning your own car is not only a privilege, but it can also be a valuable necessity that can get you back and forth to work, shopping, and wherever you may need to go. However, if you are among the growing number of borrowers in the United States who have a less than a perfect credit score, you are likely to be under the impression that car ownership is beyond your grasp. Luckily even those borrowers with damaged credit can still apply for and be approved for the bad credit card loans that they desperately need and want.

Luckily, there are special lenders who are worried less about your FICO credit score and more about your actually and provable ability to repay them when they loan you money to purchase a car or other automobile. These lenders are accustomed to working with borrowers who have, for one reason or the other, less than the desired credit score for traditional loans. These lenders focus on your length of time of employment and the amount of money you bring home (including the income of your spouse or partner if they are applying alongside on the bad credit car loan) when they make a decision as to rather or not if you are worthy under their guidelines.

Interest Rates On Your Bad Credit Car Loan

Before you apply for your bad credit car loan you should know in advance that because of your bad credit history or you delinquent credit past you will be assessed a higher rate of interest than a typical borrower with better credit. To reduce the rate of interest that is assessed on your poor credit car loan, you have two options. You can save up a down payment to apply towards the purchase price of the car or other vehicle. By reducing the total amount that you used to purchase the car you often will reduce the interest rate that the lender charges.

Another option is to apply for your bad credit car loan with the added benefit of a co signer that has good credit. By having a co signer who has demonstrated appealing credit performance your poor credit loan servicer views your application for a loan as less risky than if you have applied without the added security of a co signer. Or, you can simply consider the additional interest that you pay as an investment in improving your credit score.

Building Your Credit Score With A Bad Credit Car Loan

Once you have received the proceeds of your poor credit car loan, you have the perfect opportunity to start rebuilding your credit file. By making timely and regular payments and following the terms and conditions of you bad credit loan agreement, you can add valuable points to your FICO credit score that will form a foundation for better loans in the future that are written under less expensive terms. In this regard your bad credit auto loan will not only help you get the car you need but will help you regain your financial freedom and end your poor credit woes.

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Source by Jess Peterson