Need A Car? Have Bad Credits? 4 Things You Should Do
Posted on: 25 March 2018
If you are in need of a car but know that your credit score is not that great, there are a few things that you can do that will help you improve your chances of qualifying for the loan that you need.
1. Try to Improve Your Credit Score
You can't improve your credit score overnight, but you can get to work on improving your credit score. For example, if you are behind on making payments on a loan, you can start making the payments again. You may still be behind on your balance, but it will show on your credit report that you are making the payments again.
No lender is going to want to work with someone who is not making their payments. Even if you missed a few payments, start making those payments again to show that you can make loan payments.
2. Avoid Running Your Credit Report
Another way to improve your credit score is to avoid running your credit report. Don't apply for a credit card from your favorite store. Don't apply for a bunch of other loans. Make sure that you don't engage in any actions that would require someone to run a hit on your credit score, which can decrease your credit score.
3. Save Up Your Money
Next, you are going to want to start saving up your money. When you have a bad credit score, most lenders are going to ask you for a bigger down payment up-front. Putting down a bigger down payment up front will show the lenders that you are capable of paying off the loan that they give you. It also shows that although your credit score is poor, that you are responsible enough to save up money for a down payment, which shows that you have some degree of financial responsibility, which is what lenders are looking for.
4. Get Pre-Approved
Finally, see if you can get pre-approved before you start car shopping. Go to a lender that works specifically with people with a low credit score. That way, when you are car shopping, you already know that you have a loan that you are approved for and you know what your budget for getting a new car will be. This will take the stress out of finding a car and then worrying if you will actually be approved to purchase the car.
If you have a bad credit score, work on improving how your credit report looks, make sure that you save up money for a down payment, and be sure to get pre-approved for a loan. For more information on how to buy a car with bad credit, contact your local auto dealer.
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