Having bad credit does not mean that you can’t buy a car. Nor does it mean that you can’t get a car loan with terms that are not over your budget. Bad credit is a matter of opinion and degree. If your credit score is borderline, some dealers might consider loaning money a risk while others may see potential profits. It’s important that you scope the market. Much like with everything else you buy, you mostly visit more than one shop, do some online searching and try to make the best possible decision. Credit scores are very much the same. Make sure you do the necessary background work before you lose all hope over your bad credit. Do not take the first rate that you’re offered!
Some of the reasons other than the condition of your car that results in bad credit include:
- Your credit cards are over their limits
- You have been refused credit elsewhere
- You’re in a debt management plan
Keeping these factors in mind, a bad credit car finance score will be interpreted differently by different lenders. Having a good credit history can do you wonders for your bad credit in such a situation. This is because car loans involve comparatively less money than mortgage loans and are also easier to repossess in case of payments not being made. Thus lenders are more inclined to make better offers in the automobile market.
Even if you think you can’t get a loan with your bad credit, go to your bank and apply and see your options. The rates being offered are too good to not take the chance. It’s all about making the right plan so remember to do your homework. Owning a new car might not be so difficult after all.
Feel free to drop us a line if you have any suggestions, and remember to come back shortly for more useful content and helpful materials.