For people with bad credit scores, being able to buy a car seems next to impossible. Your bad credit score can make it difficult to enter a car dealership without getting denied.
Thankfully, you will be glad to know that you can get bad credit cars. Keep on reading to find out more on how you can get a car with bad credit.
Why Do I Have a Bad Credit Score?
There could be a lot of reasons as to why you have a bad credit score. If you want to know the exact reasons as to why you have low credit scores, you can check your credit reports.
This will help you know where you should focus your efforts on if you want to try raising your credit score. However, you may be surprised that you haven’t done anything in particular to have such low credit scores.
This is because never taking out a loan before doesn’t prove that you can prove that you can pay back a loan, which lowers your credit scores.
One of the most common reasons you could have a bad credit score is because you missed a lot of payments for your bills, especially from your credit cards.
Paying for anything that you owe very late can also affect your credit score. Also, having certain issues with the law, such as declaring bankruptcy, can greatly impact your credit score.
Should I Try Leasing a Car?
Leasing a car is one of the most convenient ways a person with bad credit can have a car. For one thing, it is more affordable to lease a car because of the low monthly payments.
The monthly payments are so low because you are technically only considered to be leasing a part of a car, hence why it would be so affordable.
The main issue with it is that you would have high interests rates because of your bad credit score.
One of the downfalls of leasing a car is that you will have to return it eventually. Once the lease term is over, which can usually last for two to four years, you have to make sure the car goes back to the person that you got the car from.
You will also have to make sure that you aren’t getting ripped off with the higher interest rates, because they might fool you that you have no other choice because of your current credit history.
Be sure that you research what the current interest rates are for leasing cars before you make an agreement, that way you will make sure that you are paying for the right amount of interest for the car lease.
Can I Get a Car Loan?
Most people with bad credit or no credit would be surprised that they can still apply for a car loan.
There are a lot of lenders or financial institutions that would allow them to get a loan despite their credit history.
You just have to focus more on those specialized lenders to make sure that they would approve you.
However just like with car leasing, they may charge you high interest rates because of your credit score. You want to make sure that you have taken a look at all the financing options from various auto lenders and financial institutions before agreeing to a deal.
They might offer better cars at a good price or lower interest rates, or more importantly they may have better terms. Be sure to take your time and look at whatever is available, that way you will be getting the most out of your money.
You could also opt for buy here pay here car lots dealerships if the lenders or financial institutions deny you. The way that buy here pay here works is that you go directly to a dealership that offers that.
The car dealership itself will give you a car loan to buy the car, and in turn you will be the one to pay them back. Of course, there is a much higher chance that you would get approved by these dealerships because they will want to earn money.
There are a lot of advantages that you can get from buy here pay here dealerships. For one thing, many of the dealerships will offer a 48 hour return policy if you have an issue with the car.
Another thing is that they are very lenient towards people with low credit scores. Mostly, you will have to show them a proof of address and have a good amount of income coming in from a stable job to make them approve you.
However, just like with car leasing and getting a car loan from an auto financing lender, there will be higher interest rates because of your credit score. Just like with the lenders, you ought to check out every bad credit car dealers around your area before settling for one.
They might be able to offer you a lower interest rate compared to the first dealerships that you looked at.
You ought to know that you have options even if you have a bad credit score. There are lots of ways you can buy a car through a car loan from a lender or contact a buy here pay here car dealership.
You just have to be aware about the facts that are involved with each option before you decide to settle with one.