The first step to buying a car that you can afford is to find out what your credit score is. If you know how bad your credit really is, then you have the knowledge that you need to avoid many of the pitfalls of financing a car. In general, if your credit score falls somewhere below 620, you have “bad” credit and are what is known as a sub-prime borrower. Remember that this does not mean you will be unable to buy a car, it simply means that you will probably pay a higher rate than those borrowers with good credit. It is also important to keep in mind that if your credit score is low, you should make sure that you purchase an affordable car. Typically a late-model pre-owned vehicle is ideal. If you make your future car payments regularly and on time, your credit score will improve. Although it can be tempting to purchase a car that looks great, it is also important to get a reliable vehicle that you can pay for.
Everyday we help people buy cars with bad credit. We provide access to countless dealers and lenders across the nation who finance bad credit on a daily basis. Our sophisticated application placement system matches you to a lender or dealer who can pre-approve you to finance a car, despite your credit history. There are no fees associated with our services, and no obligations either.
What to Expect When Buying a Car with Bad Credit
Once you know your credit score, you should also determine how much of a down payment you will be able to pay. Making a down payment on a car loan is important, especially when your credit is less-than-perfect. Making a larger down payment will reduce the amount of your monthly payment and make your new bad credit auto loan more affordable. Do not accept the first deal you are offered on a car loan, because it is important to shop around and find the best rates available. It is important to keep in mind that you will not get the most attractive loan terms with a poor credit score, but you will be able to find a car that is right for you. If your credit score improves in the future, you may wish to refinance your auto loan to get a better rate. If you do your homework in advance and you know your credit score, you will be able to finance a car. Above all it is important to buy a car that is affordable in your situation so that your car purchase can help improve your credit score.