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Car buyers often get suckered into high interest or extended-term loans which far exceed the value of the vehicle. This is especially true for buyers with bad credit.

While debt relief and credit counseling agencies will tell you they can help, many of these companies are scams and will do more damage to your credit than good.

The truth is you can't just walk away from a loan. As soon as you stop making loan payments your lender will send the loan to a collection agency. Collection agencies will harass you and family members for payment. They can also legally garnish your wages to cover your unpaid debts. The fact that your account is in collections will also be reported to the credit agencies, and this will have a serious negative impact on your credit rating and credit worthiness.

If you cannot afford your loan payments, first call the lender. Many financial institutions have hardship programs available for people who cannot afford the monthly payments. How these programs work vary by lender.

Additionally, review all offers that loan agencies offer you before getting it. Sometimes, they do offer their clients promotions but in reality, and in the long run - this could cause you a headache and have a bad loan.

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βˆ™ 2014-09-12 16:02:22
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Q: Can you get out of a bad car loan?
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Related questions

If you have a bad payday loan can you still receive a car title loan?

yes if you are lucky enough. I guess nationwide car loan executives are very smart enough to give you car title loan even if you are having bad payday loan.


Can you get car loan with bad pay history from previous loan?

One man had bad credit and had to pay 27% interest on his loan. Yes, he got a car loan. He did not get a 7% loan. You can probably get a car loan. There is no telling what percent you will have to pay and how much down payment you will need to put up.


Can you still get a car loan even if you have bad credit?

A car loan is considered a personal loan. While bad credit makes it harder to get any loan, individual car dealers decide whether they will allow a car loan with bad credit. A personal loan is an unsecured loan.


How to Refinance a car loan with bad credit?

First you should seek out your local bad credit car loan providers, and ask them to provide you the re-financing car loan. In this situation the normal lenders will most likely turn your down.


If you have bad credit will you get approved for a car loan with a cosigner?

Yes.


How can one obtain a cash loan if they have bad credit?

You can obtain what they call a "Payday Loan" if you have bad credit. Just take along the title to your car and it will be used as collateral for your cash loan. Of course if you don't pay back the cash loan they get to keep your car.


What are some reputable bad credit car loan companies?

There are many bad credit car loan companies that may be able to help. These include Car Finance 247, the Bristol Car Finance company and Capital One Loans.


If you get a loan in your name can the car be titled in another name?

No. I recently took a car loan for my son because his credit is bad. The loan is in my name, the title is in his name only. He is listed on the loan as the 'holder of colateral'.


Is a 10.4 interest rate bad on a new car loan?

Yes


If a car is repossessed will the co-signer be left with bad credit?

Yes he/she is just as responsible for the loan as the signor of the loan.


Can you include someones income on a car loan without their bad credit affecting you?

A person cannot include someone's income on a car loan, without their bad credit affecting the outcome of the loan. If another person is placed on the car loan, that other person will also be run through a credit check. This includes cosigner applicants.


How do you solve the bad credit car loan issue?

Pay your bills on time.

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