Whether it is a score in a cricket match or your credit score, both have to be in good standing to avail win and success at matches and at various loan application requests. Recession a few years back has changed the way banks and financial institutions are approving loans. Similar is the case with car loans. If your credit history is not good, then you will face problems in getting a car from car dealers.
Credit Score
Credit Score is also called FICO Score and you can obtain your credit score from three credit rating bureaus free of cost once a year. You should get the latest credit score from Equifax, Experian and TransUnion. Make sure that when you are applying for a car loan; always get the latest credit score.
This credit score is also helpful in knowing the average interest rate and monthly payment amounts for a period of 36, 48 and 60-months. If your credit score is low, do not think that you would be rejected for an auto loan. Find the car dealers which are famous due to their expertise in dealing with clients with a bad credit score.
If you have a credit score between 680 to700, then there is good news that you will be accepted without any hassle. A credit score of 500 to 640 is called subprime, and if you place your case with an experienced car dealer, you will be able to buy a car with a bad credit score quite comfortably. A credit score below 500 is off course, a red light signal and for this, you have to design a plan to turn your credit score to a good one. Recent news from the car industry is that the credit score required to buy a car has dropped significantly with a lower interest rate. The reason for such amazing news is said to be the continuous payments from borrowers and with a very low percentage of defaults.
Credit History
Credit Score alone is not sufficient to achieve your objective of buying a car with a bad credit score. You have to arrange for a credit history report. It comprises the details of all payments, late payment surcharges, loan disbursement amount. Identify the various loans and try to pay at least the minimum amount mentioned on the bills received every month at your postal address or at your email address.
Make a High Down Payment
If your credit score is bad, you can still buy a car by paying a high down payment amount. This will make your case acceptable and will work for getting a low interest bearing car loan. Usually, a down payment of 30% is best for this.
Used Car Financing
If you are rejected for a new car loan because of bad credit score and history, there are plenty of options available for you if you choose to buy a used car. Buy Here Pay Here (BHPH) dealers are very famous in these scenarios, though they take a high amount as a down payment and higher interest as well. However, in some cases, this is the only way out to achieve your objective.
Credit Score
Credit Score is also called FICO Score and you can obtain your credit score from three credit rating bureaus free of cost once a year. You should get the latest credit score from Equifax, Experian and TransUnion. Make sure that when you are applying for a car loan; always get the latest credit score.
This credit score is also helpful in knowing the average interest rate and monthly payment amounts for a period of 36, 48 and 60-months. If your credit score is low, do not think that you would be rejected for an auto loan. Find the car dealers which are famous due to their expertise in dealing with clients with a bad credit score.
Credit History
Credit Score alone is not sufficient to achieve your objective of buying a car with a bad credit score. You have to arrange for a credit history report. It comprises the details of all payments, late payment surcharges, loan disbursement amount. Identify the various loans and try to pay at least the minimum amount mentioned on the bills received every month at your postal address or at your email address.
Make a High Down Payment
If your credit score is bad, you can still buy a car by paying a high down payment amount. This will make your case acceptable and will work for getting a low interest bearing car loan. Usually, a down payment of 30% is best for this.
Used Car Financing
If you are rejected for a new car loan because of bad credit score and history, there are plenty of options available for you if you choose to buy a used car. Buy Here Pay Here (BHPH) dealers are very famous in these scenarios, though they take a high amount as a down payment and higher interest as well. However, in some cases, this is the only way out to achieve your objective.
