With the exception of some urban hubs like New York City and Chicago, it’s almost impossible to live comfortably without a reliable vehicle. If you have bad credit and need to buy a car to get to work or school, you may feel helpless. You need a car to get back on your feet, but you may feel no one is willing to approve you for a car loan with your low credit score. Fortunately, that is not necessarily true. You can find reliable sources for financing your next car purchase.
How to Get a Car Loan with Bad Credit
If your credit is less than stellar, you will need to prove to a lender you are a good candidate to repay a loan. The more money you can save for a down payment, the better your odds of securing a loan, despite having bad credit. Lenders surmise you are less likely to default on a loan when you have invested a significant amount of your own money upfront. Additionally, the more money you have for a down payment, the less money you will need to borrow. Whatever you do, resist the temptation to use a payday loan or credit card cash advance to come up with a down payment. These loans have astronomical interest rates. Because lending money to someone with bad credit is riskier, expect to pay a higher interest rate for your car loan. Fortunately, once you do secure a loan and build up a history of on-time payments, you may be able to refinance your loan and lock in a lower interest rate.
The Right Seller Will Help You Succeed
When you go car shopping with bad credit, be careful who you trust. Many unscrupulous car dealers will take advantage of you. Yes, they provide car loans for people with bad credit, but at exorbitant interest rates. Avoid predatory lenders at all costs because you’ll likely see your credit score plummet, rather than improve. At DeBoer’s Automotive, we take the opposite approach. DeBoer’s Auto offers a special credit rebuilding program. We have relationships with many banks and will help you find the right one for your particular situation. Whether your bad credit is due to high medical bills, divorce, student loans, a car repossession or a bankruptcy, we can connect you with the banks most likely to loan you money. The best part? Once you secure a car loan from a reputable lender, not only will you get a car, but you’ll begin the process of repairing your credit rating.
A Car Loan Can Help You Rebuild Your Credit
Getting approved for a car loan is the first step. Making on-time payments is the next step toward gaining your financial independence. Even one late payment can erase any progress you have made by building up months of on-time payments. Once you are approved for a car loan, try not to take on anymore debt unless it is absolutely necessary. Pay your car payment and other bills on time, and within a year, you should see a significantly improved credit score!
If you are in need of a new car but worry you will not qualify for a car loan due to bad credit, contact us at DeBoer’s Automotive in Sussex County. Over the years, we have created strong relationships with local lenders, and we have helped customers secure financing, even after they have been turned down on multiple occasions. We will do our best to help you too.