A large variety of factors can affect your credit rating. Perhaps you didn't understand how your student loans worked when you got out of college, and your credit rating took a hit. Or perhaps you lost your job and fell behind on your payments a few years ago, and those few months of unemployment are still hurting your credit score. Here are three tips that will help you secure financing for a vehicle when you have a bad credit score.
#1 Shop For Used Car Dealers That Cater To People With Bad Credit Scores
One of the first things you should do is find used car dealerships that cater to individuals who have low credit scores in your area. Many of these dealerships work with private loan providers that provide them with a cut for setting-up loans; this provides these dealerships with incentives for helping out individuals with poor credit. Often, these types of dealers will advertise that they will provide you with financing even if you have bad credit, poor credit or no credit. These types of dealerships are generally privately owned, smaller dealership. Most larger dealerships associated with a specific car brand do not target customers with poor credit.
#2 Build Up Your Savings
Another way to help secure financing for a new vehicle is by building up your savings before you go looking for a new car. If you want to purchase a vehicle that is worth $15,000 and you have already saved up to $7,500 for the down payment, that will show a loan provider that you have been able to work hard and save money, despite having a low credit score. A large down payment will back up your claims that you are bringing in a steady paycheck. The larger the down payment you are able to provide, the more likely it is that you will get the financing that you need.
#3 Build Up Your Work History
Finally, another great way to show that you are working to get back on track credit wise is by building up your work history. Many loan companies look at how long you have been working when they consider if they want to loan you money. It will look better to the loan companies if you have held the same job for multiple years; this will show them that you are capable of sticking to a commitment and that you have a steady source of income.
If you are trying to come back from a poor credit score and financing a vehicle, shop at smaller, privately-held dealerships that are willing to work with a variety of clients, and do your best to build up your job history and your savings account. Leopardi Auto Sales is a dealership in your area with guaranteed approvals.
Share12 May 2016
After our family sedan died, I realized that we needed to focus on finding a new car. I was really frustrated because I had no idea what was out there or what would work best for my family. I started focusing on finding a car that was large enough, and that simple action really made things a lot easier for me. I tracked down a dealership that had mid-size and large SUVs, and I was able to find the right car. This blog is all about narrowing down your car choices, so that you can enjoy your new car and keep your family safe.