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April is Financial Literacy Month and the consumer education coalition AWARE states that there is no time like the present for consumers to educate themselves about auto Options(6)’>financing

As we see it

There are hundreds of web sites on the Net vying for your attention if you are a credit-challenged consumer hoping to finance your next car with a bad credit car loan. The best of these sites, such as autocreditexpress.com, help many of these people raise their credit scores and reestablish their car credit by filling out an online bad credit car loan application and financing a vehicle with a second chance auto loan through one of their affiliate dealers.

Just as importantly, these web sites try to supply their applicants with the info they need in order to make educated decisions about the kind of loan they should choose (such as a tote the note loan versus a bad credit auto loan). The reasoning behind this is simple: a bad decision at this time could result in a loan these people can’t afford which could turn into in a repossession that could lower their FICO scores even further.

Financial Literacy Month

Since April is Financial Literacy Month, the educational coalition Americans Well-informed on Auto Retailing Economics (AWARE) is offering several tips for consumers on “how to be smart shoppers throughout the process — from the research phase beyond the transaction.”

Here they are:

Before financing a car:

* SET A BUDGET, based upon your needs and financial situation. If you need help, use the Auto Finance Calculator at www.autofinancing101.org.
* CHECK YOUR CREDIT RATING by obtaining your credit report from www.annualcreditreport.com.  straight off contest any errors, settle outstanding debts, and build your rationale for anything negative.
* EDUCATE YOURSELF by taking AWARE’s Auto Financing Tune-Up at www.autofinancing101.org/learning_suite/tuneup.cfm.
* COMPARE ANNUAL PERCENTAGE RATES and other financing terms from multiple lending sources.
* LEARN THE LANGUAGE and make sure you are familiar with common terms you’re likely to hear or read in the course of purchasing or financing a vehicle, including APR, down payment, fixed and variable-rate financing and on- and off-site financing. Many of these terms can be found at www.autofinancing101.org/resources/glossary.cfm.
* KNOW THE DIFFERENCE between buying and leasing an automobile.

When arranging your financing:

* STAY WITHIN THE monetary value RANGE you determined you could afford when you calculated your budget.
* UNDERSTAND THE VALUE AND PRICE of optional products such as extended service contracts, credit insurance, or bonded auto protection. If you do not want these products, do not sign up for them.
* NEGOTIATE your finance arrangements and terms.
* READ THE CONTRACT carefully before signing it.

After completing the purchase or lease:

* MAKE YOUR PAYMENTS ON TIME. Late or missed payments incur late fees and appear on your credit report, which can impact your ability to get credit in the future.
* CONTACT YOUR CREDITOR IF YOU EXPERIENCE FINANCIAL DIFFICULTY. Repossession can occur if you fail to make timely payments. Vehicle finance companies want to work with you so you can fulfill your financing obligations and reclaim firm financial footing.

The Bottom Line

By following these tips, most of which can also apply if you’re taking out a bad credit auto loan, you can rebuild your credit faster and raise your FICO score more quickly while paying the smallest amount of interest expense possible on your loan. And while interest rates and loan terms are not as competitive and leasing is not usually an option, the rest of these tips are what we’ve always recommended here at Guaranteed Bad Credit Loan

Finally, you should also know that we have helped thousands of people with bad, flawed, bruised, and tarnished credit buy cars and reestablish their auto credit at the same time. Our nationwide network of affiliate dealers specializes in bad credit car loans. So if you are serious about getting your credit back on track, you can begin the process right now by filling out our secure online bad credit car loan application.