Just because you may not have perfect credit doesn’t mean you’re not eligible for an auto loan. our NY auto loan company is dedicated to providing our customers with the credit approval they need. However, if you are applying for an auto loan with bad credit, there are some things you need to know and expect.
With poor credit, you can expect to pay more through interest rates for an auto loan than those with good credit. Generally, if your score falls below 620, lenders consider you a sub-prime borrower which disqualifies you from the more attractive loan offers. That being said, its important to be realistic about the car you are hoping to purchase. More expensive vehicles will increase the difficulty of getting a loan. So for now, go for a car within a reasonable price range and land your dream car in the future once you’ve improved your credit score and financial situation.
The first step to obtaining a loan is checking your credit report. Simple mistakes can jeopardize or ruin your credit score. You also want to be sure your score isn’t currently being damaged any further. Once you’ve checked your report, keep your score in mind. Your score is the top factor that lenders consider when deciding on approval. Knowing your score may even lead you to find that you’re not far from obtaining a ranking that would qualify you for a lower rate. You can contact any major credit agency to obtain your score.
Before you apply for loan, make sure that your recent and current credit payments are up-to-date and have been paid on time. A clean credit history will give the creditor all the more reason to lend you money. While there may be more than a few financial institutions that will be willing to give you a loan, you’ll want to shop around for the best offer. Relying on a dealer can be the easiest way out as well but may come with steeper costs as the dealer is also trying to me a profit through financing. Instead, visit your bank, who may be inclined to lend to a member, or a credit union or center that takes into account more than your credit score. If you are unhappy with the loan you have acquired, no worries. You can refinance your car for better terms once your credit ratings and financial situation has improved.
Ready to ride? Contact us our Medford bad credit loans department today!