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If you have a bad credit, that doesn`t necessarily stop you from buying a car or property. You can still apply for a bad credit auto loan or a bad credit mortgage. The reason is that one out of every four people fails to get a standard auto loan or mortgage loan because of bad credit. There will be lot of consumers lost, if those who have a bad credit do not get any chance to redeem themselves. However, there is quite some bad impression about bad credit loans which is neither totally true nor totally untrue. Therefore you need to do your due diligence before taking a bad credit auto loan or mortgage.

The first thing you should find out is how much more is the lender charging you compared to the standard rates. This will obviously need some research on your part to find out what are the interest rates for a standard loan. This will also need a thorough credit check on your part to find out what your scores are and how much can you leverage it. Once you are aware of the interest rates and how much extra you are paying, you should be able to negotiate with the lenders, which is possible when you don`t have a terrible credit. You also need to remember that the more the time gap between the occurrence of bad credit and the application processing, the more is the chance for you to get a lesser interest rate.

You should also make your calculations as to how much down payment can you really afford. This will give you an estimate of the total interest you will be paying and the time for which you would be making the monthly payments.

As you make your monthly payments consistently, your credit score should increase too and your initial negotiations with the lender should leverage this fact as well. This means, you should be able to get a lower interest rate after certain period of time. If your car loan extends for 5 years and you make consistent monthly payments for a whole year, there is no reason why you should continue with the high rates. Most lenders should be able to give you a good deal. Finally, you must be aware of how much you are actually paying for the car, as most lenders can cheat you on the car prices as well.