Have Bad Credit? You Can Still Find Affordable Loan Options
How Do You Find Car Financing With Bad Credit?
There is a nearly endless list of reasons why someone might have bad credit. However, temporary financial difficulties don’t preclude someone from needing safe, reliable and affordable transportation. Davey Auto Sales works with people coming from a variety of credit situations. One of the most common questions we hear is, ‘How do you find car financing with bad credit?’ We have a number of lenders that we can work with, but it will also be helpful if buyers in this situation do some work on their end before visiting us. Let’s take a look at a few things you might not know.
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Get Your Outstanding Debts In Order
It is not impossible to find a loan to buy a car if you have bad credit, but the process might involve a few extra steps. The first thing a buyer in a tough credit situation should do is take a look at their credit report and get any delinquent accounts current, pay off any debt you can and dispute errors. All of these things can go a long way toward improving your credit score before you start the credit application process.
Save Up For A Bigger Down Payment
Finding a car loan is always easier if you don’t need to finance as much. Saving up for a larger down payment will go a long way toward various financial institutions being willing to work with someone with bad credit. The conventional wisdom says that used vehicles should come with a 10 percent down payment. Having more than that on hand will be very helpful.
Find A Co-Signer
A co-signer is a person with a better credit profile than the primary borrower, who would be responsible for the loan if there are problems. Lending is all about managing risk. Adding a co-signer to a loan spreads that risk out and could be helpful in securing a loan for someone with a less-than-perfect credit profile.
If you’re in a tough spot from a credit standpoint, make an appointment with Davey Auto Sales today. Our team has a lot of experience working with people in these situations.