In the auto industry, “bad credit” typically refers to a score of 600 or lower. If your score is less than ideal, you may think that you can’t get a car loan or that you have to lease. However, this is simply not true anymore.
Bad-credit car loans exist to help people just like you. Before you enter in to such a loan, it’s important to understand how your credit can affect your loan and what you can do to get a deal that makes sense for you.
Decades ago, there were only a few big banks that did car loans. Back then, if you had bad credit, it was nearly impossible to get a car loan. While times have changed, many people still believe that their credit history will keep them from auto ownership.
In contrast to popular belief, a credit score below 600 doesn’t have to stop your car ownership dreams. We have options available for you. However, lenders may require a larger interest rate to finance these loans.
Know Your History
Before you buy a car, check your credit history, not just your score. There may be something on your report that is not accurate. If a piece of your credit report doesn’t reflect what happened, you could end up paying higher interest for no reason. Contact the credit bureau if you see inconsistencies.
Improve Your Score
If your score is rightfully low and you’re working on it, you can still get a car loan now. In fact, making regular payment could help raise that score. You can buy today and refinance when your credit has improved. This option can get you in a car when you need it and still save you money down the road.
A spot of bad luck can hurt your credit score, but that shouldn’t stop you from getting into a new or used car. Ask about your options, and we can help find the right deal for you.