You may be wondering how you could possibly buy a car with bad credit, the good news is it is possible and you can improve your credit along the way.
Bad Credit is not a permanent situation. If you have had financial difficulties in the past, your current credit score may not be great, but the good news about a bad credit score is it can change. Check out the steps below to get an auto loan with bad credit.
Know Your Credit Score
The first step to getting a loan is knowing your credit score. When you go in to talk about financing options, you don’t want to be surprised by your credit. Know what you have going for you and know where you need to improve.
Improve Your Credit Score
If you want, you can try to wait several months to get a car so you can improve your credit score. Making timely payments over the course of several months will improve your credit, which can lead to better financing options.
Be Ready to Make a Large Down Payment
If you have a little bit more money saved up and you can make a larger down payment, lenders may be more willing to work with you even if you don’t have the best credit score. Showing that you have saved and you have the money to make a decent down payment will give them more confidence in your abilty
Shop Around for Good Offers
Take some time to look around for good offers. This includes offers on vehicles as well as offers on financing. Find something that will truly fit within your budget and will allow you to make timely payments. If you have a bad credit score, you are likely to have a higher interest rate on any auto loan you take out. This is because your credit score indicates you may be more of a risk to lenders. However, you can still shop around for different offers, and after you have made timely payments for several months, you may be able to lower your interest rate.
Financing your car can be a stressful situation, but it doesn’t have to be. If you prepare in advance and go into the situation with confidence, you will probably be able to find the financing you need. If you have questions or are simply interested in learning more, you can contact us.