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Financing a Car with Bad Credit

When you’re shopping for a used car, you’re probably scouting for good deals around the Wilmington, Wilson, or Goldsboro area that are suitable for your budget. However, depending on your credit score, you may have to take some additional steps to get the car you want. Don’t worry because we’ll give you some pointers to help you on your journey to the used car you want.

Financing a used car with bad credit isn’t as difficult as it sounds. The important thing is to follow the steps to ensure that you can actually afford the used car you’ve been considering.

Check Your Credit Score

credit reportWhen you’re about to embark on major purchase like a vehicle, it’s good to know where you stand in terms of credit. You want to check your credit score to see which credit category you fall under. Excellent credit is 750 and higher, whereas good credit falls between 700 and 749. Fair credit lands between 650 and 699.

If you’re below the fair credit line, you’re in the poor credit arena, falling between 600 and 649. However, if you’re below that, then you have bad credit. Having bad credit can make it difficult to obtain a car loan.

Improve Your Score

When you have poor or bad credit, you want to do everything you can to raise your score so lenders don’t view you as a risk. While it may be stressful thinking about tackling your debt, there are ways to improve your standing as a borrower. It may seem like an impossible feat trying to settle your debts, but as long as you begin chipping away at them, you’ll be on the right path.

Trying to improve your credit is more than just settling your debts, though. You should make sure that you pay your bills on time and stay on top of them when they’re due. It’s important to know that you shouldn’t open a new credit line, as it could actually put you deeper in debt.

Shop Around for the Right Dealer

credit scoreIf you have poor or bad credit, getting financed for a used car can be difficult. However, it all depends on the dealership that you work with. Research dealerships in your area that work with borrowers in your credit range. You can even try to get pre-approved so you can see what kind of hurdles you’ll face when shopping for your next car.

Finding Your Used Car

You’ll want to browse for a used car that fits into your budget. When you don’t have the best credit, you’ll need to make a larger down payment to get lower monthly payments. Consider talking to the finance department of your preferred dealership for advice and recommendations regarding getting the used car you want with your current credit score.

Want to learn more about financing a used car with bad credit? Contact us at Pecheles Automotive. We’re always willing to help drivers in the Wilmington, Wilson, or Goldsboro area.