First of all, commend yourself for taking the steps necessary to repair your credit. There are many consumers who simply don’t bother attempting to clean up delinquencies and other credit problems, and by now you have probably realized that it’s no easy task. Fixing up your credit takes a lot of time and determination.

As you have probably realized, sometimes being a borrower isn’t the best position to be in. Because of this reason, this may not be the time to purchase a car. First look at all your options; do you simply have car fever? Is your friend zipping around in new a car, which has brought out a jealousy streak? Closely examine the reasoning behind wanting a new car, and think about some alternatives. Is there public transportation available that can get you to and from your required destinations? Public transportation, although far from glamorous, is a viable option for people without a car. As a bonus, taking a bus or other form of public transit is better for the environment too. If your reasoning behind buying a new car is because your car is on its last legs, figure out how much longer your current car might last you. You may be surprised at how long some cars can last, far beyond the expectations of the owner.

If it becomes blatantly clear that none of these options are viable for you and it is indeed time to buy a car, there are a few routes you can take. After all, if a new job takes you beyond the scope of the bus route, or if the birth of a baby makes the two-seater impossible to use, the above options simply may not work. It is important to remember, however, how your credit got in bad condition to begin with. It is best at this time to avoid taking out any other lines of credit for two reasons. First of all, you will probably be offered a less than desirable interest rate for any loan you get approved for. The second reason is that opening new accounts while trying to get your credit under control seems awfully counterproductive. How do you take control of something that you keep adding more to?

Look around and try to take advantage of whatever resources you have available to you before leaping into a new loan with a commercial lender. Are there relatives you have who might help you out with some money? Do you have a retirement account which you might be able to use as collateral on a secure loan? A secure loan will generally result in a lower interest rate and a higher level of approval since it is secured by collateral. It is important to understand, however, that if the payments aren’t made the lender has the legal right to take the money from the retirement account or whatever other account used as collateral. There are many options open for a resourceful person willing to look at the situation creatively. Who knows; your great aunt may have a fully functioning car sitting in her garage collecting dust that she would be willing to unload on you.

If none of these options work for you, then maybe it’s time to start looking at dealerships and private sellers. It is worth a shot to visit your bank or credit union and see if they have any sort of loan product available to consumers who are in the process of fixing their credit. After all, poor credit is an increasingly more common occurrence. Many lenders are adjusting accordingly with the loan products they offer.

There is no shame in buying a clunker. Now is not the time to purchase the luxury vehicle you have always dreamed of. Restraint is imperative right now. Look for a functional car that will get you from point A to point B without any extras. There will be lots of time later, after your credit is sufficiently repaired, to get a car more to your liking. Working towards a better credit score will be well worth it in the end. So what if you have to drive a car with an ugly paint job for a year or two? Remember, this too shall pass.

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by SolveYourProblem.com : 2007

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