You might be ready to walk to a car dealer to buy your first ever car. However, you might be stopped from being able to get a car because the dealer saw your credit report. Another scenario is that you were going to a bank or a lender to apply for a car loan and found out you were denied because of your low credit score.
No matter what the situation was, having a low credit score can affect a lot of things in your life, and that includes your ability to be able to buy a car.
Getting approved for things such as auto loans and car leases can become much more difficult. Even if you make a good income every month from a stable job, this may not insure whether or not you get approved to be able to have a car.
Luckily, there is no need to fret. You can have the ability to get car financing or get approved for a car lease even if you have bad credit.
You just have to know as much information as possible about car dealerships and other tips. Keep on reading to find out how you can get your own car despite having bad credit scores.
Aim for a Higher Score.
Your credit scores might be bad and that doesn’t mean that you can’t apply for a loan by following some techniques, but it definitely could help if you tried to raise your credit score more.
However, you have to be patient and realize that raising your credit score doesn’t happen after a few days. You have to instill some habits in you and learn some extra tips as to how you can raise your score.
The first thing that you ought to do is to check your credit report before doing anything. That way, you will be able to analyze exactly why you have bad credit and know where to work from there.
Shockingly, you can have a low credit score because you have never taken out a loan before and have no proof of a past reputation of being able to pay your dues.
Once you know the reasons as to why your credit scores are low, you now know what you can do. If the main reasons that you have a low credit score come from your credit cards, then it’s time to clear out all of your balances.
As much as possible, try to pay off anything that you owe right away to help try to clear out a bad record.
Additionally, it is crucial that you meet your bills on time. You will want to make sure that you pay for them when they are due as much as possible.
Late payments for bills or loans can greatly impact your credit scores in a negative way. To make sure that you will be able to meet your current financial obligations and pay for the past ones, be sure that you don’t invest your money or splurge on anything too big too avoid adding any nasty things into your current credit report.
Get More Accounts.
While you are trying to pay off any leftover balances in your other credit cards, why not make yourself look better? It may sound strange at first, but you should try to open more accounts if it is possible. However, the catch is that you have to make sure that you are careful with the way you use these accounts.
The key point of opening these new financial accounts is to show that you are financially responsible. When you open new accounts, make sure that you are paying for everything that is due on them as soon as possible and avoid creating anymore unpayable debt. So, these new accounts that you open will be in good standing.
This is a simple yet efficient way to boost your credit score, because these accounts will show that you are meeting your obligations.
Keep Your Old Accounts.
The longer you have had an account can actually help raise your overall credit score. You just have to make sure that you try to make these accounts look good with as little balance in them as possible.
The older accounts that are also active count as credit age. Therefore, if you keep your oldest account alive and well, you will be able to have “mature credit age.”
Create Diversity with Your Accounts.
If you are planning to follow the advice about opening more accounts, then you might as well take advantage of this tip as well to get a higher credit score. Whenever you plan on opening a new account, be sure that you are trying to create different types of accounts.
However, if you are opening new accounts and making sure that they are different accounts in hopes to raise your low credit score, then you better slow down.
It helps your credit score, but opening more accounts than what you can handle can be quite hectic, so be sure to create a new one whenever you need it, as it will make things less complicated.
Find the Right Car Dealership.
One of the best ways to get approved for a car loan is to find a good car dealership. There are many bad credit no money down car dealerships near me, you just have to scope around your area.
If you look properly, you will be able to find a dealership that will sell to people with bad credit and no money down for down payments.
However, be sure that you are looking at the terms carefully before signing to anything, because you could be charged a very high interest rate if you are not careful.
Be sure that you take a look at what the interest rates for cars are, including for people with bad credit. This will help you know whether the dealer is giving you a reasonable rate because of your bad credit history, or if they are trying to take advantage of you.
They might think that you assume that no one will approve you, so they will offer a car to you but with a much higher interest rate.
Be sure that you know how much you can actually afford to take out of your income every month in order to pay for your car.
It’s not a good idea to take out all of your savings just to get your car. It is better to calculate your income to see how much you can spare, along with some savings.
In addition to that, make sure that you try to get a cheap car as much as possible to help yourself have an easier time getting approved.
Find a Financer.
If you need cash to buy a car, then you can try to find a good lender who will be willing to loan the money to you. However, keep in mind that your bad credit scores might make them unsure about lending money to you.
Try to raise your credit score a little more and show them that you have recently paid off a lot of your balances. You could also try to show statements from people, such as your landlord, about how you pay at the same time every month and in full.
You do not have to be stuck in a rut just because your credit scores are low. You can easily try to repair and rebuild it to become a good score, which will only take about 1 to 2 years.
Alternatively, you can always find ways to be able to get things despite credit, such as buying a car from a bad credit car dealership or find a lender who offers car loans to people with low credit scores. Don’t give up hope, there is always a way!