A lot of work has been done to make the world of car financing easier to understand, but there is still a long way to go. To help with that, our Caledonia car loan team came up with some common questions they get asked on a regular basis.
The idea is to answer as many as we can here to help you better understand exactly what you’re getting into when you sign up for a car loan in Caledonia.
So here we go.
My credit score is under 600, can I get a car loan?
Yes, you can! We have access to mainstream and bad credit car loan companies who will look at any application we give them. It isn’t always easy and you will pay more in interest but you can definitely access car finance in Caledonia with bad credit.
I’m self employed, Will I have trouble getting a car loan?
No, you won’t have trouble getting a car loan. You have to go further to prove your income and prove you can afford the loan than an employee but that’s it.
Your employment status actually has very little to do with being accepted for a car loan. Affordability is much more important. If you can prove beyond doubt that you can afford to pay back the loan and have a steady form of income, you can get a loan.
My credit report is wrong, will it affect my chances of getting a car loan?
It might. Much depends on what’s wrong. If it’s a simple error with a settled account, amount outstanding on a debt or a particular date at a particular address, it shouldn’t affect an application.
However, your credit report should always be 100% accurate. If you do spot a mistake, follow it up with the organization that made the error and request they put it right. If they don’t, contact a credit bureau and ask them to add a note or make the correction.
It is your legal right to be correctly represented to make sure to exercise it.
I have bad credit, do I have to have a cosigner?
No, you don’t have to have a cosigner. You may benefit from one though. Much depends on your credit score, current situation and whether you know someone worth being a cosigner with.
You can access a Caledonia car loan without a cosigner regardless of your situation. It may cost more in interest so it’s worth talking to us about it before you commit.
Are zero money down car loans worth it?
Sometimes. Zero money down car loans can be perfect for certain situations but not so good for others. This is a question best tackled in person.
If you cannot save a down payment and need a car for work or other reason, we can certainly secure a no money down car loan in Caledonia.
I had bad credit, does this mean higher interest on a car loan?
Bad credit can mean paying higher interest but not always. Lenders assess much more than just your credit score so it isn’t all that’s going on. Other factors come into it so there is no definitive answer.
This is another of those car loan questions where we would need to check your specific situation to give an accurate answer.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!