Here is how to avoid the bad credit scam and save hundreds of dollars the next time you buy a car…

First of all, not all car dealers want to rip you off, but this is one car scam that is used almost daily by dishonest car dealers.

This scam happens in the car dealers auto finance department. What happens is that after negotiating the price of the car you want, the finance department will run a credit check on you. The salesperson or finance person will come back from who knows where and tell you that you that your credit score is too low and the only way they can get you the car you want is to get you a car loan at a higher interest…with points!

But maybe you have good credit…and can qualify for a low interest car loan?

The higher your credit score is (your FICO score), the lower the interest on your car loan will be. See, they are counting on you just taking them by their word that your credit sucks because many customers have no idea what their credit is like. So it is very important that you get your own credit report BEFORE going in to buy a new or used car.

The reason they use the bad credit scam is so they can get you into a high interest car loan so they can make money off of the extra points charged. Points are a percentage point of the entire loan. If the car loan is for $20,000.00, and they hit you with 3 points, then BAM, that car loan right away is going to cost you an EXTRA $750.00 – plus interest!

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