Need a used car loan, bad credit. What NOT to do.

Need a used car loan, bad credit. What NOT to do. Needing a car but not being able to afford it, or having such a bad credit score no banks or lending companies will consider you is a horrible situation to be in. Thankfully it is very likely that if your feel you are in that situation it is just that a feeling, the truth of the matter is you have many options to choose from. Having said that, even though you have many options to choose from you also have many options you should stay away like from the plague. What these options are and how to avoid them is the theme of this article.
We will see three basic DON’T EVEN THINK OF DOING THAT scenarios that will increase the chances of getting a good loan and will reduce your gullibility levels to the despair of dodgy estate agents and mortgage brokers.  These scenarios are 1) Shop around,  2) Longer than necessary loans are for losers, 3) Fixed interest is not always the best option.
Shop around. It is amazing how little research and footwork people will do when buying the greatest asset they will probably ever own. DON’T GO FOR the first loan you are offered. Keep a record of the different offers you get, work out the real cost of each loan not only the monthly installment. Read the fine print, asks your broker to explain every detail along the way. Get a lawyer to check the details, they are expensive but they are worth their weight in gold if something happens to go wrong. In some countries like Spain and Portugal it is obligatory for every loan provider to make sure their customers get independent advice and counseling before taking on a loan of considerable value. This is not the law everywhere but it should be.
KISS or keep it simple, stupid! is a great proverb. For home loans we should make it, keep it short, stupid. When shopping around for loans it is easy to equate low monthly payment loans with cheaper loans, but the truth is the opposite. The longer the loan the more interest you pay. In fact the tenure (or length) of your loan is the one most influencing factor in the cost of your loan. To illustrate in a loan of 200,000 dollars just dropping the loan tenure from 20 to 15 years will reduce the typical interest paid by up to 150,000 dollars.
Banks love to send fixed rate interest (at a juicy premium) especially to new home loan or mortgage borrowers. People like to have a security of how much they will pay a month and are happy to pay a little higher interest for the peace of mind. This is a valid point to a certain degree; however don’t let the fixed rate interest trick you into paying too much for your home loan or mortgage.