Bad Credit Car Loans
There are many different reasons why people find themselves with a poor credit score. Some have been hurt by economic downturn, while others have gone through personal hardship. And then there are those who simply haven’t managed their money well. No matter where the subpar score came from, just about everyone needs transportation. The good news is that there are some understanding lenders – and we work with a number of them – who are willing to work with credit-challenged individuals and give them the second chance they need on the road to repairing their credit.
“What Can I Do to Better My Chances of Getting Approved?”
Number one, you’ve got to know your budget and stick to it. A sensible sticker-price limit will lower the amount you need to borrow, making loan approval all the more likely. You should also save as much as possible for a down payment before you start applying for financing. The bonus is that the down payment will show potential lenders that you’re able to manage money better and you’re on the way to improving your credit. If putting more money aside isn’t possible in the short term, you still have some options for securing a car loan.
“What Else Can I Try?”
If your attempts to find credit on your own have so far failed, ask yourself if there’s a trusted person in your life who’s on more comfortable financial ground. Do you think this person would be willing to cosign a loan for you? That’s a big request, since you’re asking somebody to be on the hook for your car payments if you default. But if you find somebody who trusts and believes in you, it can open the door to credit approval.
Otherwise, you can apply for a bad credit auto loan through a subprime lender. This is the type of lender that we mentioned at the beginning of this article: those who regularly work with people who have fair to poor credit. The caveat of this type of loan is that the interest rate will be higher than you would get if you had a higher score. But in some situations, any kind of credit approval will feel like a gift.
There are a few good things that will come out of your approval for this type of loan. First, you’ll be able to buy a car! Second, you’ll be on the way to repairing your credit, as your score will rise as you keep making your payments on time. And you can always refinance into a lower interest rate when your income situation has improved and you’re more solidly on your feet. You certainly don’t have to be stuck in a high-interest situation for the entire term of the loan.
Ready to Apply?
When you’re ready to apply for an auto loan catered to those with less-than-perfect credit, stop by the financing office at Balise Honda at 400 Riverdale Street in West Springfield. You can also give us a call at 413-306-3034, or apply online. We look forward to working with you!