How to Buy a Car When Your Credit Isn’t Perfect
For most people, in order to buy a car, you need a car loan. In order to get a car loan, you need good credit. Not only that, with poor credit even if you can get approved for a loan it may be attached to a high interest rate. It is true that buying a car with poor credit is more challenging, but it is not impossible. The following are a few tips on how to buy a car even if your credit isn’t perfect.
- Check Your Credit Score Now: The most obvious thing you can do is take steps to improve your credit score before you try to buy a car. At the first inclination you may need or want to buy a new car down the road, check your credit score and take steps to improve it, and of course, make sure you don’t add anymore red flags to your credit report in the meantime. When you check your score, you will be able to see exactly why you have earned that score and often tips to improve it. Even slight improvements can make a big difference.
- Get to Know Your Current Financial Situation: Before you even begin looking for a new car, get a better understanding of what you can afford to pay. Consider things like how much of a down payment you can afford to make and how high of a monthly payment you can afford to pay. Do all this while considering your current financial status and budget. Also, check out the current interest rates on loans. If you have poor credit you can expect to pay more. Consider all these factors together to get a better idea of how much you actually afford to pay for a new car.
- Pre-Approval: Now that you understand your credit score and financial situation better, the next best step to take is getting pre-approved for a loan. Getting pre-approved for a loan does not have to be challenging with poor credit. At Smith Chevy Hammond, we are willing to work with you even if you don’t have the best credit.
- Be Realistic: Once you know what you can afford to spend consider skipping the extra bells and whistles. Features like heated seats or heated steering wheels, sunroofs, leather seats, are all features that can drive up the price. If you must choose between having the vehicle you want with no extra features or a less expensive vehicle with all the extras, ditch the extras and enjoy the car you want most.
- Be Smart: Also, when you are shopping for a car loan, make sure you know what you are signing when you are signing loan documents. Take time to understand what you are agreeing to. Basically, take your time.
At Smith Chevy in Hammond, we are happy to work with you even if you don’t have perfect credit. Reach out to us and our auto finance department to see what we can do for you.
