It can be almost impossible to get preapproved for a car loan when you
have a bad credit. That’s because lenders and financial institutions are also
protecting their interest. They don’t want to invest their money in a credit
that has a high risk of default.
How a Bad
Credit Car Dealership Can Help
If your low credit score is preventing you from getting the best deal on
a car loan, you still have one more (and probably the last) option—to go to a
bad credit car dealership. This is a type of dealership that offers financing
to buyers, specifically to those who failed to obtain preapproval.
Just because you have this option, however, doesn’t mean you’ll let your
credit rating continue to dwindle. You have to do something to get back on
track. Take note that your credit score will affect not just your ability to
take out an auto loan but also other major financial transactions you’ll make
down the road, so you have to reinstate your creditworthiness.
Repairing
Your Damaged Credit Score
Here are some tips that can help you repair you credit score:
Gather the
Facts. When it comes to your creditworthiness, it’s
ill-advised to base your decisions entirely on presumption. Don’t just assume
that your score might possibly be low because you’ve been behind on your bills
and other loan payments. You have to know for sure the impact your setbacks had
made on your credit.
There’s no place better to get this information from than the major
credit bureaus—TransUnion, Equifax, and Experian. They usually give a free
credit report, which reveals your credit history and the rating it amounts to.
This report, however, is not always accurate. Sometimes, it contains errors
that can have a detrimental effect on your rating. So as you try to collect the
report, also check for errors that might be inappropriately dragging your
rating down.
Start
Paying Off Your Remaining Debts. With all the information
you’ve obtained from the credit report, make a list of all of your accounts and
check recent statements to determine how much you owe on each account. Also
check the interest you’re being charged with.
Create a payment strategy that prioritizes debts
with the highest interest, but also make sure to maintain minimum payments on
your other accounts to pay off everything within a predetermined timeframe.
Doing these will not only increase your chance at recovering from the
financial downturn you’re currently going through, but it will also provide
access to more financing opportunities. In fact, it would help to get these
tasks done even before you head to a car dealership to take out bad credit auto loans.
This way you can prove at the very least that you’re doing your best to make
your financial situation better. This proactive approach can also serve as a
guarantee for the car dealership that you will indeed comply with the
conditions of your contract. In effect, you’ll make your car purchase even
smoother.
About
McLoughlin Chevy: As your total automotive resource in Oregon,
Mcloughlin Chevy works hard to provide the most recent Chevrolet models and
world-class car services. We also offer GM certified used vehicles, parts, and
accessories. Whether you’re eyeing out for the new Chevy model lineup or get
the most desirable value for your trade, we’ve got you covered. Are you having
difficulty getting pre-approved for a loan? Not a problem, because we offer bad
credit auto loans as well.
Sources:
How To Catch Up on Late Payments, thebalance.com
How to repair my credit and improve my FICO
Scores, myfico.com
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