1.Know Your Credit Score
The first thing to do when you decide to start your search for a new or used car is to check your credit score. There is an abundance of free credit score sites available it is easy to check your score to figure just where you stand quickly. You may think you have bad credit because you have overextended yourself with credit card purchases or have made a few late payments. However, knowing what your exact score is can make a huge difference when it comes to monthly payments and interest rates.
2. Improve Your Credit Score and Avoid additional payments
If your score is less than perfect give yourself ample time to get back on track. By cleaning up your credit history before you apply for a loan will improve your chances of being approved for a lower payment plan and smaller interest rate. Credit reports are only updated once a month so you will need to give yourself a minimum of 30 days to see any improvements. There are several steps you can take to get your score back on track including:
- Paying off credit debt
- Clearing any errors on your credit report
- Creating a positive payment history over a period
3. Know What You Can Afford
Whether you credit score is in perfect health or you have no credit at all knowing your budget is a crucial part of the process. Many car buyers can quickly get over their heads when it comes to financing a new vehicle. Figure out how much money you will have left over each month after you have paid your bills. Having a well planned out budget can keep you from falling into the never-ending loop of credit debt. If you are not sure if you can afford a specific vehicle check out our Auto Loan Calculator
. Just type in your loan amount, down payment, loan term and estimated APR. Our loan calculator can give you a rough estimate on how much that new car could cost.
4. Get Pre-Approved
You can have a better idea of what kind of vehicle you can afford when you have a predetermined loan amount. Talk to your bank or credit union about getting a car loan and to figure out the pre-approval process
. This pre-approval analyzes your income, expenses, credit score. A report is generated and will then be what determines if you qualify for a loan and how much of a loan you will receive. At Bob Ruth Ford we have an on-site Ford credit center
that can help you get pre-approved in a matter of minutes regardless of your credit history.
5. Find a Bad Credit Car Dealership
Finding dealerships that accept bad credit near you can seem like an impossible task. However, at Bob Ruth Ford, we have a team of people who are experienced in bad credit financing. We understand that sometimes bad things happen whether it be divorce, medical bills or layoffs. Which is why we will exhaust every avenue to get you approved for a bad credit car loan. Here at this Ford dealership near you, no one is ever flatly turned away for having poor credit. Instead, we will carefully review your credit information until we can find a car loan that fits with your wants and needs.
Buying a Car with Bad Credit
If your credit is not where it needs to be in order to get qualified for low APR financing, there are several ways you can save money even with a bad credit loan. When it comes to bad credit auto loans, you run the risk of higher interest rates as well which is why it is important to know where you can save money when it comes to your car loan. Choose a Short-Term Loan:
While it may seem like a less than appealing option, short-term loans such as a three-year loan tend to carry a smaller interest rate as opposed to a long-term loan of six years. However be honest with yourself and your financial situation. Be sure that you can afford the larger monthly payments without stretching yourself to thin. Make a Larger Down Payment:
While your credit history can hinder the size of the loan, you will receive it does not affect your down payment. A more substantial down payment would offset the interest rate and taxes of purchasing a new car. Plus the larger of a down payment you have, the smaller monthly payments you will have, and you can even shorten your loan term.Skip the Extra Features:
When you are looking to buy a car with bad credit, your loan amount will be smaller than when you have good credit. Because of this, you might have to skip out on fancy features such as leather seats, a premium sound system, and many other “high end” features. Unique warranty and protection plans can also add up quickly and more times than not are not needed. Make Extra Payments or Larger Payments when you can:
The quicker you pay off your car, the better. Temporarily cutting back on extra costs such as going out to eat and putting it towards your car loan may seem like a pain now but will pay off in the long run.
When you are wondering are there car loans for people with bad credit the answer is yes. While it may seem like a never-ending process to get approved for financing, there are car dealerships that accept bad credit out there ready to help you get out of debt. When you are asking yourself how to buy a car with bad credit, let the Ford dealership near you Bob Ruth Ford help. Our team of friendly and knowledgeable people are happy to answer any questions you may have about the financing process. The next time you are looking for bad credit car dealerships head to Bob Ruth Ford at 700 North US Route 15 Dillsburg, PA 17019.