Bad Credit Car Loans And Possible Problems

There are bad credit car loans available nationwide but some may be fraudulent. If you are one of the many Americans who have experienced a glitch in your finances recently and are looking into bad credit car loans, you will want to heed warning when researching these types of loans.

I don't like to talk about negative things in my articles but I felt I would be doing my readers and clients a disservice if I didn't address this. I hear way to many horror stories of innocent people getting ripped off...and it really makes me mad!

Due to the recent trouble with our economy, there are many people who are experiencing less than perfect credit. And, because cars are pretty much an absolute necessity to help get yourself back on your feet, there are predators preying on those that may be looking for bad credit car loans.

Buyer beware...

Whenever there is an increased demand for services such as special financing, scams will pop up like the dreaded dandelions that show up every summer in your lawn.

It's unfortunate that there are people who would take advantage of others like this.

But it's true!

So it's worth knowing this information to avoid being a victim of unethical practices when looking for bad credit auto loans.

Here are a few things that you should watch for to be sure that you do not get ripped off or have your identity stolen:

First, with online sites that offer special loans for those with poor credit often there is no one-on-one contact with an actual person. Therefore, be sure that before you go through the pre-approval stage, you see both a phone number and a physical mailing address. Call the number to be sure it is a legitimate business, ask the person that you speak with if you can talk to their manager so that you know there are employees available within the lender's establishment.

There are scams that will ask for all your personal information on the pre-approval application, just to get your social security number as well as other personal info from you. You risk having your identity stolen and this is the last thing that someone needs if they are already experiencing financial troubles.

Next, avoid an online source that offers "guaranteed approval". In the lending world, this can stand for, "We will do anything, including possible unethical means to get you to borrow money. So, if it sounds too good to be true, it probably is. Be sure and dig deeper before giving your personal information to anyone.

Also beware of those asking for up-front pre-approval fees. With this you risk the chance that once you send in your money, you will never hear from them again.

It is a good idea to know your credit score ahead of time before looking for an online auto loan. Sometimes the lender will tell you your credit score is simply too low to be approved for a lesser interest rate. They will then charge you higher interest putting less money in your pocket and more in theirs.

And, finally beware of the scams that tell you that you must have a co-signer. If this is true, it is simple to protect yourself here because both names should be on the final loan paperwork. Look closely at the paperwork to be sure your name is on the loan to avoid causing possible troubles with your insurance company. Just as important, without your name on the loan you could lose the chance to rebuild your credit through the bad credit car loan.

There are bad credit car loans available that are legitimate and thank goodness for this. Do your homework before moving forward with any of these companies.

1 comment:

  1. In a bad credit loan scam, the "lender" often promises to send you a loan, but only after you first send a fee to obtain the loan. http://tinyurl.com/winstonkiva

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