A car is often viewed as a necessity for most people. Reliable transportation is necessary in order to maintain a decent job. Without a job, it is nearly impossible to pay bills and establish credit. Unfortunately, for people with bad credit, it can sometimes be difficult to obtain a loan to buy a car at an affordable rate. However, there are bad credit car loans available for those who need them. Before seeking out a loan, Mark has 5 tips every consumer needs to know about these types of loans.

· Before beginning the search for a loan, it is important to know what kind of credit score a person is working with. Never assume a potential creditor is being completely honest about the status of a person’s credit score. Pulling a credit report is also an excellent opportunity to check for any discrepancies that could be unnecessarily bringing a score down by several points.

· It is important every consumer takes time to shop around for bad credit car loans. Going in with the attitude that any loan will do is detrimental and could end up costing thousands of dollars in the long run. Never take the first loan offered until after checking around and comparing rates.

· Apply for a loan through a credit union before heading to a dealership. Credit unions offer competitive interest rates to even some of the riskiest buyers. Check with local banks as well.

· Do not assume poor credit restricts a buyer to a dealership that caters to those in need of bad credit car loans. There are plenty of car dealerships willing to offer favorable deals to those with low credit scores. Car loans are much easier to obtain because of the ease in which lenders can repossess property that is in default.

· Do the math on any loan offer presented. Do not fall for low monthly payments that last six years over payments that are a little higher, but the loan is paid off in three years. Longer loans tend to translate to more interest being tacked onto the principal of the loan.

While it is a fact people with excellent credit ratings will get loans with prime interest rates, it is entirely possible to get bad credit car loans with interest rates that are fairly close to the prime rates. All it takes is diligence in finding the right loan to suit a person’s needs.

People who have bad rating are likely hoping to rebuild their credit score. There are many different reasons for damaged credit, but there is always a way to rebound. One of the best ways to begin the rebuilding process is to open a new loan line. Fortunately, there are credit cards for bad credit. Although these cards may look good on the surface, it is important to do some investigating before applying for one of these cards or accepting any offers. People with scores below 550 are likely to have very limited options. Almost all banks will require some kind of deposit or monthly fee before granting a credit line.

1-Before applying for any card, get informed. It is important everybody knows their credit score. Do not be bullied into high interest rates, ridiculous monthly fees or a steep deposit. Those who know their credit score will be able to bargain for a better rate.

2-Only take a card that will report payment history to the major credit bureaus. This is crucial to the reestablishing of one’s credit score. Regular payments are one of the fastest ways to rebuild poor credit as well as establishing a solid credit history. However, if the bank does not report the payments the credit line will not help the credit score.

3-Once a credit line has been accepted, it is important to keep the balance low. Credit scores are negatively impacted by cards that have high balances. It is something referred to as debt ratio. Future lenders will be less likely to lend to those who have credit cards near the limits.

4-After a person has had one of the credit cards for bad credit for at least a year and all payments have been made on time, it is time to apply for another card. Apply for a card that is not secured and has a lower interest rate. Keep in mind; the best interest rates are reserved for scores above 700. It may take a little time to get there, but with a dedicated approach to rebuilding a credit score, it can be done.

5-Weigh the options presented carefully. Look for a good balance of monthly fees and interest rates. Do not be fooled by a low interest rate and a high monthly fee or vice versa. Avoid cards that charge high interest rates and exorbitant monthly fees or annual fees. Often times cards will be offered with a low credit limit that is ate up the first month with an annual fee and a high interest.

Each person will have to choose the right credit card based on their own needs and current credit scores. Credit companies are naturally a little leery about extending credit to somebody who doesn’t have a proven track record. It isn’t anything personal, it is just business. By using these tips, a person will be able to make an informed decision about what credit cards for bad credit will work for them.

Credit means everything in today’s world. It affects a person’s ability to buy a car, a home and even insurance rates. With so much emphasis placed on good credit, it is imperative a person knows how to raise your credit score. With a good credit score, which is typically defined as a score above at least 650, moderate interest rates on credit cards and loans are offered. This can save a great deal of money in the long run. These 5 tips will help increase a score and afford a person the luxury of more credit with better rates.

1-Pay every bill on time even if the payment sent is just the minimum amount due. One late payment can dramatically reduce a credit score. It doesn’t matter if it is only a day late. Late is late and it will negatively impact the overall score. If a payment absolutely must be late, contact the creditor and ask for an extension. Most companies will offer to do this once a year.

2-Avoid having a bill sent to collections. Even if the bill is paid off, the collection report will stay on a credit report for seven years. Work with a creditor to arrange monthly payments before a bill is sent to collections. Most creditors will accept monthly payments as long as the payments are made on time every month.

3-Avoid paying off all credit card balances completely. If you want to know how to raise your credit score, it is best to have a balance on credit accounts that monthly payments are made to. This proves the ability to maintain regular payments and will help to increase a credit score.

4-It is crucial a person pays close attention to his or her credit report. Any unauthorized charges should be disputed immediately. This can also be an indicator of identity theft. As soon as a suspicious account appears on a credit report, it should be investigated immediately.

5-Avoid closing accounts that are not currently in use. Scores depend heavily on credit history. Pull out an old credit card and use it for minor purchases from time to time to keep it active. The older a credit history, the better it is for a credit score.

These tips are some of the easiest for a person to implement. The tips provided will help improve a score in a matter of months. For those who have a goal to buy a new car or a home, it is a good idea to star working on improving a credit score at least six months to a year before applying for a loan. This ensures the best rates and gives plenty of time to work on getting negative marks removed while ensuring regular payments are being made. When you are trying to find out how to improve your credit score, be wary of programs that charge a lot of money before any work is done.