You know you probably need to replace your car, but your credit is not stellar. It is a mistake to assume that your low credit score is a deal breaker when it comes to financing your next vehicle, though. Dealerships handle bad credit car loans all the time, so don’t abandon all hope that you will be approved. All you need to do is prove that you are not as much of a credit risk as your score might indicate.
How Low is Your Credit?
Many people are unaware of their credit score. Maybe you assume that it is terrible because you had problems a few years ago. Before you come to the dealership, get a copy of your credit report. Not only may you be pleasantly surprised at your score, but you might also discover quick ways to raise your score. Be sure to correct any mistakes on your report that you find. If you catch them in time, you can get them corrected before you need the car loan.
How Much Do You Make?
If you have bad credit, you can often offset it with proof that you have a significant amount of disposable income. Credit only shows your payment history. It does not show your present or future. Your pay stubs, however, can give the dealership a fuller picture of your actual ability to honor the terms of the loan.
How Much Can You Put Down?
You can also increase your loan approval chances by making a large down payment. A large down payment can also help you get better terms on the car loan. This lowers the total amount you are asking to borrow, which makes you less of a credit risk to the dealership.
Your credit history does not have to end your chances of getting the car you want. If you can prove that you can afford the vehicle, your loan application is likely to be approved.