How to Get Car Financing with a Bad Credit Score?
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Here at Travers Automotive Group, we’re often approached by drivers who want to know how to get a car loan with bad credit. Luckily, it is possible to get an auto loan with a not-so-great credit score! When you work with Travers Automotive Group to secure the keys to a pre-owned vehicle, our finance team will help you figure out how to finance a car, no matter the status of your credit score. Read on to find out how to get a bad credit car loan, below!
How to Get a Car Loan With Bad Credit
If you’re thinking about upgrading your St. Louis drive with a new car, but you have a bad credit score, here are some things you can try to get together beforehand to ensure this is the most financially sound decision for you:
- Figure out how much you can pay. When you purchase a car, the expenses consist of more than the amount you’re borrowing. You’ll have to take into account other expenses such as annual registration fees, car insurance, maintenance costs, and gas costs. It’s best to determine how much money you can put towards these things without negatively compromising your financial situation.
- Try to make a bigger down payment. If you don’t have the best credit score, making a larger down payment will help lenders view you as a more favorable borrower. Additionally, a larger down payment means that you’ll have a smaller loan balance to pay off, resulting in less interest paid overall.
- Try to clean up your credit report prior to applying for a loan. Inspect your credit score for any potential errors and dispute them because they could be negatively impacting your credit score. Also, if you have any outstanding debts, start paying them down where possible as even the smallest dent can help improve your credit score.
- Be realistic about the kind of car you can afford. When financing a vehicle, your priority should be finding a car with an affordable payment–even if it’s not your dream car.
- Shop around with lenders. You don’t have to immediately take the first offer a lender provides you with. Apply with a handful of lenders so you can compare rates and find the one you want.
How to Get a Car with Bad Credit: Improve Your Credit Score
What some St. Peters car shoppers don’t realize is that if you take out a bad credit car loan, and can consistently make on-time payments each month, this will help to improve your credit profile and credit score. This will give you more lending power down the line for lower interest rate loans and credit cards.
Finance a Car with Bad Credit Near Florissant Today!
Want to know more about how to get a car with bad credit? Contact Travers Automotive Group today! We’ll help you comb through your options and secure the best loan terms for your financial circumstances. If you need help with a down payment, value your trade-in online to see how much your current vehicle is worth so you can apply that amount to your new vehicle purchase!
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