A bad credit score doesn't end car loan and credit opportunities

Americans rely heavily on cars and credit cards, and when a credit score gets in the way of obtaining one or both of these items, it can make life difficult.

It's no surprise that you should maintain a good credit report. But with the recent economic decline, you might not have a sterling report any longer. Still, you should know what's on your report so you can work toward improving it.

Before you go looking for new credit cards or auto loans, get your free credit report at www.creditloan.com. The law allows you to receive a free report from each of the three major credit bureaus once a year. When you get your report, check it for errors, and then get started on correcting those errors to make your credit score more accurate.

In addition to checking your report for errors, get started on improving your credit habits. Start paying bills on time. If you can't afford the entire payment, make sure you pay the minimum amount due to prevent your credit from being docked.

Even if your credit history is a little rocky and your report isn't as good as it once was, you can still apply for credit cards or auto loans.

When applying for auto loans, you will need to do the following things:

* Provide proof of income - creditors will request proof of income, want copies of your tax records and bank statements and probably check your credit score. If you don't have the best credit, you can apply for bad credit auto loans, but you will be paying higher premiums.

* Investigate interest rates - Lenders will factor into this calculation the type of car, your credit history and how long the loan will run.

* Determine if you want direct or indirect financing - Direct financing is from a bank or lending institution. Indirect financing is through the auto dealer.

* Look at secured and unsecured loans - There are advantages and disadvantages to both - no matter if you have good credit history or a low credit score. Make sure you do your research before signing on the dotted line.

If you do have bad credit, it's a little harder to be accepted for credit cards. If you are working on improving your credit score and also need a credit card, your best bet is to apply for a bad credit account and get started making timely and regular payments, which will help improve your credit rating. You will probably be making higher payments with a bad credit account, but it might be worth it if your credit score improves.

Visit www.creditloan.com to apply for credit cards - no matter what your credit rating is - and get started on turning your life around by improving your credit score.

Courtesy of ARAcontent