So, you’ve applied for a loan and found out you were DENIED.  You probably feel bummed, but you may also be wondering what to do next. Before you get up in arms about the situation, see this as a great opportunity. Now you have a chance to investigate any issues that are likely lurking on your credit report. Here are the next steps you should probably take:

• First, find out why you were denied. The lender will send you a letter letting you know what the issue was.
• Next, check your credit report. See if there are any late payments or accounts in collections that brought your score down.
• If you see anything on there that looks fishy, make sure you aren’t a victim of identity theft.
• After you’ve checked the problem and know why you were denied, you may want to consider a new lender.

Keep in mind that every time you apply for a loan, it pulls down your credit score a few points. It’s considered a hard inquiry. You’d do best not to keep applying for loans you know you won’t get approved for until you fix the issues on your credit report.

Now that you’re aware that you can find a lender who will take a chance on you, don’t make the mistake of going with the first fish that bites. You have to be sure that you’re making a sound financial decision that benefits you in the long run. This means not getting distracted by the promises of lower monthly payments in exchange for a long term loan. If you have to take out a long term loan, you probably can’t afford the car.

Also, make sure that the loan doesn’t have a bunch of extras tacked on that you don’t need. This includes extended warranties, insurance or after – market services.

Finally, make certain that once you drive off the lot that that’s it. There shouldn’t be conditions afterwards. Some lenders have been known to contact buyers later telling them that their interest rates have increased or that they need to make a larger down payment.

If you make strategic steps ahead of time, you can totally get the car you need without having to pay an arm and a leg. Just remember to do the proper leg work and most importantly, don’t get caught up in desperation.

Read: Part 1 & Part 2

In part 1 of this series, we began exploring how to get a car loan even with bad credit. Bad credit is an issue many people have, but it doesn’t stop them from needing a ride. If you put in the leg work, you can definitely get the ride you need.  Here are a few more ways to get it:

Check out your bank or credit union first. It may seem like a long shot, but try applying at the bank where you have your checking account. You can also check out banks who are known for giving out auto loans. This may be national banks, regional banks and popular online lenders.

Also, get someone to go with you who can be your extra set of eyes and ears and who can be your partner. Their role is to not act too impressed and to help you stay neutral throughout the negotiation process.

Check out part 3 of “How To Get A Ride Even With Bad Credit”, for some final tips.