You may think that your damaged credit will prevent you from being approved for an auto loan, but this may not be the case. Many lenders are willing and qualified to work with your financial situation, and if you’re willing to do a few things to help the process along, you could be back on the road in no time.
While living in bad credit denial will save you from having to deal with your damaged borrowing reputation for a while, you will eventually have to face your finances. So many things can be negatively affected by a low credit score, and your situation will only get worse the longer you let poor credit slide. On the other hand, taking charge and repairing your credit is more doable than you may think.
If there were outlying factors that led to your economic state, such as a job loss, injury, divorce or a business related bankruptcy, and you were responsible for your finances up to that point, that is what is commonly referred to as “situational” bad credit. It is the best position to be in if you are in need of special financing.
If your credit is bad and you have been looking for a car to buy, you’ve likely run into problems finding a dealership that is willing to help you. And that can be extremely frustrating, especially when you need a car now.
Not all dealers are signed up with lenders who offer bad credit car financing. Choosing what lenders to work with is a big decision, and sometimes cannot be made by individual dealerships themselves. It needs to be done right, with the proper documentation. If not, the financial loss for all parties involved could be disastrous.
Not all bad credit is the same. There is “Good-Bad” credit and “Bad-Bad” credit. This can make all the difference with bad credit car buying.
Since subprime lenders typically only do business indirectly through their dealership partners, applicants with less than perfect credit won’t know if they’re approved until after they’ve visited the dealership, been interviewed by the finance manager, turned over the required documentation and had their credit application submitted to a lender.
Account re-aging is a practice that not everyone is aware of, but it could affect your financial life if you have unpaid debt. It involves changing the dates that are associated with a delinquent account, and it can be beneficial or detrimental, depending on the situation.