Buying a car with bad credit - Chicago News and Weather | FOX 32 News

Buying a car with bad credit

Posted: Updated:
ATLANTA -

We're always talking about the benefits of good credit when you make a big purchase. But, what if you don't have good credit and still need to buy a car? Well, you can, but you have to know the pitfalls, and the traps out there waiting for you.  

No matter what kind of credit you have, most of us will need to buy a car at some point.  But, don't aggravate your credit situation with a bad purchase.

Before you leave the house, know your credit score and what the going rate is for your credit rating.  That way you'll know if what you're being offered is acceptable. A the lot, skip the extras when you decide to buy.  Many aren't worth the money and if the salesman pushes them on you, don't be swayed.  With interest, it costs more.

Don't ever drive off the lot without signing a final contract.  If you don't, and instead sign something that says "subject to final approval" then unsavory dealerships can let you drive off, then call you the next day and say that financing wasn't approved and then push up the interest rate.   

Avoid pre-calculated interest which means you pay all of the interest up front.  If you want to sell before you pay off your loan or maybe re-finance, you might owe much more than you realize.

Watch out for penalties.  Know whether you have an early pay-off penalty written into your contract.  You don't want to be charged for paying off your car early.

Don't feel rushed when buying a car.  Take your time and read the contract.  The car is not the only one out there. If you have rocky credit, you should think through the purchase.

  • I-Team Story ArchiveMore>>

  • Fox 5 I-Team

    Cheap vs. Frugal

    Cheap vs. Frugal

    Wednesday, April 23 2014 9:15 AM EDT2014-04-23 13:15:25 GMT
    There is nothing wrong with saving a buck, but can you cross the line? There is a difference between being cheap and being frugal.
    There is nothing wrong with saving a buck, but can you cross the line? There is a difference between being cheap and being frugal.
  • Fox 5 I-Team

    Save on Vacation

    Save on Vacation

    Monday, April 21 2014 9:56 AM EDT2014-04-21 13:56:05 GMT
    Thinking about vacation is a lot of fun. Thinking about what it'll cost you is not so fun. Here are some ideas for cutting costs.
    Thinking about vacation is a lot of fun. Thinking about what it'll cost you is not so fun. Here are some ideas for cutting costs.
  • Get Financially Fit: A Step-By-Step Plan

    Get Financially Fit: A Step-By-Step Plan

    Monday, April 14 2014 9:15 AM EDT2014-04-14 13:15:13 GMT
    April is Financial Literacy Month, so it's time to think about getting financially fit.  Let's start with two questions. Do you know how much you spend each month?  How much of your check should you save?
    April is Financial Literacy Month, so it's time to think about getting financially fit.  Let's start with two questions:  Do you know how much you spend each month?  How much of your check should you save?
  • Contact the FOX 5 I-Team

    * denotes required fields

    We're sorry, but only one entry is allowed per person.
    Thank you for your continued interest.

    Thanks for contacting FOX 5.  To reach our newsroom by phone, please call (404) 898-0100.

Powered by WorldNow

205 N. Michigan Avenue
Ground Floor
Chicago, IL 60601
Station Operator: (312) 565-5532
Newsroom: (312)565-5533

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices