The Bad Credit Nightmare
Bad credit is about as useful as a box of rocks. The worst bit is the fact that the people with the worst credit scores are the most gullible. Money lenders are typical vultures, feeding off other people's hard work is part of their job description. Bad credit is always an accident waiting to happen. Many people have come to the realization that money lending is perhaps the easiest way to scam people without risking jail time, and your bad credit just paints a big red bulls-eye on you back.
It is hard to spot a scam, the trick is to know what to look for so you don't get caught out. Some legit companies may, to some extent, help you boost your credit rating. The plan is to be able to tell the two apart.
The Bad credit auto scam-Don't be in too much of a hurry to sign anything. That is usually the trick. They hurry you into signing a loan form without any proper research. Like many loans for bad credit deals, it always seems like a great offer, the bad credit auto loans start up interest rates for the car loans are low enough to wet your palate. Then two, three weeks later the rates go up by almost double. These may or may not be included in the original contract. This is exactly why people are advised to carefully read the fine pint before signing anything. What they may do is to make you believe that the initial document was merely an application, and that they can deny you the loan based on your crappy credit. So essentially, you have to approve the ridiculous interest rates to get your car loan, so basically, you're screwed.
Research carefully about the car dealer and your lender. Take your time; find a good lender with bad credit loan rates you can accommodate.
How do I spot Bad Credit auto loans scams?
The trick is to be typically weary of people who are overly willing to offer you bad credit loans despite your not so great credit history. So when you are all excited and you run to pay the so-called ''security deposit'', think again.
Some companies with rates that are manageable, do exist. The idea is to avoid the fraudsters. Desperation can be an awful base for decision-making, and it may land you in more debt than you can afford to pay. So what do you do? How do you maneuver through the 50 feet of crap laid by the bad credit scammers into legitimate lenders?
What to do
Ø Do not ever pay up for bad credit loans front.
Ø If they guarantee the loan before you apply, its a scam
Ø Don't give personal information on the phone
Ø Research, look for better alternatives with better rates.
Ø Try and verify the authenticity of the company and if it really exists.
Finally, bad credit is a nightmare in itself. Therefore, despite how desperate you are, falling into a scam won't do you any favors, so take your time, look through your options and find something you can work with.