Bad credit car loan in Alabama | Car loan financing by Alaba

by Alabama auto dealer

Alabama, like every other part of the nation, is feeling the result of the credit crunch, high gas prices and housing bubble. These economic issues have affected good people who know have credit problems. If you live in Alabama - Daphne, Fairhope, Mobile, Eufaula, Enterprise, Ozark, Dothan, Columbus, Troy, Birmingham, Hoover, Cullman or any other part of Alabama here are some things to look for when getting a bad credit car loan in the State of Alabama.

Improving Your Credit Score
FICO credit scores are the most widely used by lenders. Scores range from 300 to 850, and the median FICO credit score in the U.S. today is 723. By improving your credit score you can save a good portion of your car loan because the interest rate depends on your FICO score

FICO scores are based on five factors:

? 35% - your payment history

? 30% - how much you owe at this time

? 15% - the length of your credit history

? 10% - the amount of new credit

? 10% - the mix of credit

Do Your Homework on the Car before you buy in Alabama
The Kelley Blue Book and N.A.D.A. Appraisal Guides have been the standard for determining car values for years so you can check prices online at www.kbb.com or nadaguides.com. Secondly, know the vehicle's history. If you have the vehicle identification number, you can use a service such as Carfax to purchase a history report on that vehicle before rushing to get an Alabama bad credit car loan. However, the report will only show what has been reported to insurance companies or government agencies. If the vehicle was in a flood, for example, and this was not reported, that information won't show up. Go to www.carfax.com or AAA.com.

Buy a Fuel Efficient Vehicle
According to AAA, the average two-car family now would spend about $6,200 a year to gas up its vehicles. With national average price of regular unleaded hovering around $4.10 the time to buy a fuel efficient vehicle is now. In the 1970s, when gas-station lines snaked around the corner and gas guzzlers ruled Detroit, Asian automakers flooded the nation with fuel-efficient models. Today, after Detroit's long romance with gas-quaffing SUVs, U.S. automakers again are playing catch-up to hot-selling Japanese hybrids.

Here are 10 Fuel Efficient Vehicles

1. Toyota Prius
2. Honda Civic
3. Honda Accord
4. Toyota Corolla
5. Toyota Camry
6. Honda Civic Hybrid
7. Toyota Yaris
8. Nissan Altima
9. Ford Mustang
10. Honda Fit


Shop online in Alabama - Let Lenders Compete for Your Business
If you decide to look online for a loan in Alabama, you will find that there are sites where you can apply for a loan and have lenders compete for your business. You only have to fill out one application and hundreds of lenders will evaluate your loan and give you an idea of the rates and terms you qualify for. To help you land favorable terms, shop around online and get pre-approved for a loan first. Then, see if the model you want comes with any incentives, such as 0% financing. It is difficult for a bank to beat that car loan rate in Alabama