If you have bad credit and need to buy a new car, there are options available to you. We have done all of the heavy-lifting and identified the best steps you can take. Well, our auto loans did the heavy lifting for us. The following is what they consider the optimal way to finance a bad credit car loan in Caledonia.
So, what is bad credit?
Bad credit is a broad term and depends on who is giving the credit. A credit score is dynamic and is influenced by things like the number of years you had credit, whether you always paid your bills on time, and how much debt you are carrying.
Don’t worry, we won’t bore you with the technical terms.
There is a good chance you can get a bad credit car loan in Caledonia so long as you are not in a state of undischarged bankruptcy or consumer proposal.
Finding the right auto loan provider
You will likely not be able to find a competitive bad credit car loan in Caledonia. There will be a huge number of websites that claim to have access to the most aggressive lenders but you should steer clear.
While these websites are great when you are doing some research, they don’t always deliver the cheapest loans.
What you should do is look for a local dealership that specializes in helping customers with credit challenges.
You can identify these dealerships by asking if they help customers with credit issues.
During the initial consultation with the dealership, they will ask you to fill out a no-obligation application. This application will give the dealership a financial snapshot of your credit and income.
Based on the information on the application, the dealership will be able to select which lenders are going to give you the best deal. Dealerships have very strong relationships with these lenders, which gives them the ability to negotiate the best terms.
The dealership wants to keep you as a long-term client so they are going to give you some practical advice on how you can improve your credit score. You should consider signing up for credit reporting applications, to keep tabs on your credit score.
You can quickly improve your credit score by paying at least the minimum amount due on time, every month. If your bill is due on the 15th of the month, set a reminder so you will pay it a few days earlier to ensure the payment clears in time. Ore use automatic payments that make it even easier!
You do not have to wait for your credit score to improve before getting a car. One popular option is to take out a Caledonia car loan now and follow the credit building advice provided by the dealership later.
In 12-18 months, your credit score should have improved to the point where you qualify for prime interest rates (680+ range). What you can do is apply to refinance your current car loan to a lower interest rate.
The dealership would know which lenders will give you the best rate and get everything in place for you.
It may seem like there are many steps involved but the first and easily most important is contacting a reputable dealership. The sooner you reach out for help, the happier you will be with your new car.
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!
For any questions or concerns, please don’t hesitate to contact us here!