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When your financial life is confined by the number on your credit report, life is difficult. Iowa residents might not be known for their over-the-top nature like the people of New York City or Miami or Los Angeles, but they still know how to use a credit card, how to get into debt, and how to ruin their financial status. It happens all the time, and it’s not just the people who don’t care about their finances or taking care of themselves it happens to. It happens to good people who work hard, do their best, and work to make sure they can care for their families. Jobs are lost. Workers are injured and their income is diminished. The economy collapsed in 2008, and it caused a lot of people to end up in financial ruins.

If you need a new car, Iowa lenders aren’t exactly thrilled to offer you a loan with bad credit. You might assume you have no options available, but it’s not the case. If you can wait six months to a year, you can buy a new car with bad credit and a bad credit loan. In fact, some of you might be able to do that now. It all depends on how long ago your credit was damaged and how long it’s been since you made a late payment. Ideally, being able to show a lender that you do have a bad credit score but your recent payment history for the past year or more is on target is helpful. They want to know that you are making an effort to gain control of your finances and fix your credit.

Your score is going to show negatively for up to seven years depending on how many negative items you have. It’s not easy to raise your credit score when you’ve had a bad year or so, but you can do it over time while you wait for negative items to pass the point of removal. One way is to avoid making any late payments, and to never miss a payment. Another way is to pay off your debts. Using less than 30% of your available credit is what looks best to lenders. If you can save a down payment for your new car, you’ll find many Iowa lenders are happier to work with you.

One place to ask for a loan is your credit union. Iowa credit unions love to help their customers when no one else will. They love to hand out loans to those who need them the most, even when it means extending credit to someone with a low credit score. If you can show them you have made your last year or more worth of payments on time, they’ll probably work with you.

Many dealerships now work with lenders that specify in bad credit auto loans. It’s apparent to lenders in Iowa that more people than ever suffer with bad credit, and they want to help them get the loans they need to afford the car they need to get around town to and from work and other activities. You can find a dealer willing to work with you on this if you ask around.

Dealership Information and Regulations

Iowa laws are in place to protect both consumers and business owners. If your credit is so bad you cannot afford a bad credit loan, you’ll consider a buy here, pay here loan. These are dangerous. You want to familiarize yourself with state law. You want to choose a lot that offers cars that have been inspected and tested before they were offered as items to purchase. You want one that’s happy to provide you with a Carfax report upon request without charging you, since this is illegal and not permitted. You also want a dealer that’s licensed, insured, and has been certified by the state.

This is true of any lot in the state, but it’s a big problem in the smaller lots that offer cars for sale through their own payment plans. These plans are very expensive, require multiple monthly payments, and they often come with unreasonable terms. You don’t want one if you can avoid it, but sometimes it’s the only way a consumer can get the car they want and the loan they need. You’ll also need a large down payment for this type of loan, which sometimes makes it impossible to secure one.

Driving in Iowa

There are some big cities here, and some very cold winters. It’s imperative you provide yourself with the kind of time it takes to commute during rush hour traffic and in the winter when the snow is falling. This is especially true for those who live and work in the biggest cities, which are Des Moines, Cedar Rapids, Davenport, Sioux City, and Iowa City. You should also familiarize yourself with the laws in every community in the state so you don’t end up with a ticket. If you have bad credit, chances are good a ticket might not fit the budget.

One such law is that you must never use the handicap sticker or license plate of someone who has passed. It seems like one of those laws that might be common sense and it might apply to people in every part of the country, but it’s specific to Iowa. You don’t want to break these laws because you don’t want to face losing your car due to nonpayment of your ticket or a suspended license.

Driving in Iowa is fun, but it’s not easy for those with bad credit. If it’s something you suffer with, you want to know what your options are and how you can avoid living a life without a car. You have choices, but your first choice should always be to get your financial life in check and make better financial decisions prior to purchasing a new car with a bad credit auto loan.