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Ever been a little late on a payment? Or had a spell when your payments were really late? It's happened to most of us, and you've probably worried about how payment tardiness affects your credit rating.

That's why you may notice a popular advertising campaign at new- and used-car dealerships: "No Credit? Slow Credit? Bad Credit? No Problem! Come see us, the Credit Fixers!" But don't jump in your old buggy and head to the dealership just yet. If you really care about your pocketbook and your credit standing, read on.

Why would dealers want to draw customers with bad credit? Because the dealership usually makes a lot more money on them. People worried about getting financing generally don't argue about the price of the car or the price of financing.

The result: big, fat profits--at times, thousands of dollars more profit on a person with marginal credit than a person with A-1 credit. Many dealerships even have special "hardball" sales tactics for these customers. "Make your money on the poor folks;" one sales manager said in a sales meeting, "that's why they're poor."

How do you avoid becoming a victim? Follow these steps:

• Know your credit standing before you go to the dealership.
  • The easiest way is to apply for a loan at your credit union, and tell the loan officer what you're doing: "I'm thinking about a car, but want to know if I'll be approved."
  • If the credit union says "yes," you're home free.
  • If the credit union puts a condition on your approval--a larger down payment, for example--or turns you down, ask why, exactly.
  • Ask what would get you an approval. Then do it, even if it means postponing your car purchase until you have a handle on finances.
• When you shop dealerships, don't discuss credit at all.
  • Shop for the car as if you re paying cash, and never be rushed. Your credit union probably has good tips on shopping right.
  • Agree on a price before talking financing.
• If you need to finance at the dealership, never finance on-the-spot.
  • Shop financing at two dealerships, at least.
• Always go back to your credit union for a financing comparison.
  • Your credit union may give you a dramatically lower rate than the "bad credit" lenders if you simply pay down some extra cash.
• Don't be bullied. If a dealer begins to push you around, get out of there. And tell your friends about your experience.

Don't let past credit problems make your credit even worse. Take your time, talk to the people at your credit union, and make decisions calmly. You ll get a better price and a better credit rating, too.

Copyright 1996 Credit Union National Association Inc.Information subject to change without notice.
For use with members of a single credit union. All other rights reserved