Tips for Financing with Bad Credit
According to data released by Experion, it’s believed that 16% of Americans have bad credit. Unfortunately, those with bad credit can find it incredibly difficult to secure an auto loan. Still, it’s not impossible – even with car dealerships raising interest rates for those with low credit scores.
Although getting an auto loan with bad credit can be challenging, it is possible if you follow a few simple financing tips. Additionally, dealerships like Certified Headquarters can help those with poor credit secure an auto loan and buy the vehicle of their dreams. So if you’re ready to begin your car purchasing journey, continue reading to learn the tips you need to know.
What Are 3 Tips For Financing With Bad Credit?
Below are the three financing tips we’ve found that can help you secure an auto loan if you have bad credit. If you’re ready to buy a car, visit us at Certified Headquarters to learn more about your options.
Look For Different Auto Deals And Interest Rates
When you have bad credit, you must leave your options open by looking for different auto deals with varying interest rates.
Different dealerships will have different interest rates, so you need to find a car dealer you can trust who will give you a fair interest rate even though you have bad credit. Ideally, you should try to get the lowest interest rate possible on bad credit car financing, so be sure to speak to your car dealer about your options.
Additionally, before speaking with a dealer, checking online for the average auto loan rates to better understand if you’re receiving a fair rate is an excellent idea.
Try To Secure A Short Term Loan To Avoid Missed Payments
After you have found a car dealership like Certified headquarters that has offered you an acceptable used car loan rate, your next step is to ensure you choose the right term for your auto loan. Unfortunately, many people make the mistake of opting for a long-term loan, but if you have bad credit, it’s usually best to choose a short-term loan.
The shorter your loan term, the quicker you’ll be able to pay off your vehicle, and the faster your credit will improve. However, don’t choose a short-term loan term unless you can afford it, as you could make your credit worse when you inevitably miss monthly payments.
Consider Utilizing A Co-signer To Better Your Odds
If you have bad credit, one of the best ways to better your odds of securing an auto loan and the car you want is to have a co-signer. If you have a co-signer, it will show your lender that they will have more financial security, especially if your co-signer has good credit.
This is because a co-signer will be the one to pay the lender if you fall short on payments. Unfortunately, because of this, you might have trouble finding a co-signer. If you do find one, you need to ensure they are someone you can trust, so it’s usually best for them to be family members or friends.
These are only a few tips for financing a car with bad credit. Should you want to learn more about this process or would like help finding a car that matches your needs, wants, and preferences, you should speak with an auto expert at Certified Headquarters.
Our qualified team can help match you with the car of your dreams while accommodating your bad credit – depending on the situation. Contact us, and we will be in touch.
