Getting a Bad Credit Car Loan
A car can be very important to completing each of the day to day tasks and chores. Getting to and from work, to the stores, and yes even those unplanned for emergencies, waiting on a ride or trying to work around the bus schedule can be pretty difficult at times. The freedom a car can give you is mighty important, so why should you let anything hold you back? Your credit score could be. Read on to learn how to better understand your credit score, how to improve it, and the steps to take to work with it on buying your next car.
Step one: Understand what your Credit Score is
The first step to buying a car is to figure out what your credit score is. Your credit score is how you work with lenders in order to afford a new or used vehicle. It is overall a view for lenders to see how you have in past handled your debt and will make an impact on whether they approve you and what type of interest rate you could receive. This can be influenced by how many loans you have, how often you meet payments, number of accounts you have open for credit, how often you have applied for loans, and anything else that may be of interest to a lender. You can check your credit score once a year with any of the three major consumer reporting companies. You can improve this score by paying bills on time, double checking for any discrepancies on your report, and by keeping credit low.
Step two: Figure out what you can and cannot afford
After you know what your credit score, it is important to know what you will be able to afford. If you have a lower score you can expect to see higher interest rates, so it may be best to note that in your budget. Don’t worry, you can always try for a lower interest rate by adding on a cosigner. Remember, the best way to improve your credit score for the future is to make sure you only have payments you can afford. This can happen by choosing either a longer loan period (which could lead to paying more in the long run on interest) or by saving up and putting down a large down payment. Know that by keeping your payments within your budget that you will not only be buying the car of your dreams, but improving your credit score as well.
Step three: Know what you want to buy and how
Now that you know how much you can afford and what types of loans you can expect to see, it is important to do some research on what vehicles can be found in your budget and where you will apply for financing. Generally, when looking for financing with bad credit, it can be beneficial to check with banks, credit unions, and other direct lenders. As for the vehicle, you may want to check out which are within your budget then narrow it down based on features that are most important to you, overall car mileage, fuel economy, style, and even cargo capacity. Once you have a short list of your top five or three, step onto our lot and take a look around.
Conclusion with dealership
We are more than happy to help guide you through this process as well. You can talk with our finance team to learn more about the steps for finding the right loan and vehicle for you. You shouldn’t allow fear of a bad credit score to keep you from having the freedom owning a vehicle can provide. Stop by Sunset Trucks today and let’s chat. We are looking forward to working with you.