Looking for a vehicle is a big deal. In fact, taking out an auto loan is one of the biggest financial commitments people make. So, what happens when you need a car but are experiencing issues with your credit?
There are many different things that potential car buyers have concerns about when they are looking to purchase a car.
How Badly Will Damaged Credit Impact My Chances?
For car buyers with tarnished credit, their credit rating is a huge concern. What may ease some of those concerns is that there are actually two types of bad credit behaviors: situational and habitual.
Situational credit circumstances are those where a certain event, or a series of events took place that resulted in a bruised credit rating. These can include things like a job loss, a medical emergency, or a divorce. If you can show a subprime lender that you were making on time payments and being responsible with your available lines of credit, they may still consider you for a loan and the terms will be dependent on the actual situation at hand. In some cases, you may not see a significant difference between a subprime interest rate and one offered by a regular lender. If getting approved is proving to be a problem, you may just need to be matched up with the right lender.
When someone shows a chronic misuse of credit or the inability to pay on time, this is called habitual bad credit. In these situations, there were factors that could have been controlled by the borrower, but they chose not to keep up on their commitments. Of course, we know that even if this is the case, everyone should have an opportunity to fix their past mistakes. An auto loan can still be easy to find, but you will need to work with a buy here pay here dealer. However, it could lead to an improved credit rating in the future.
I'm Just Starting a New Job
Of course, when you have damaged credit, employment stability becomes more important for a lender. And sometimes because of that, a buyer might worry about a gap in employment or the amount of time spent at a job.
If you are changing jobs, the length of employment may not be a problem if you can show previous long term employment, show that you have a permanent residence, or have lived in the local area for a long period of time.
Also, lenders understand that people need to seek out better opportunities. If the job is in the same field, or the reason for the job change was for an increase in pay, they likely will not have an issue with this.
How Long Will It Take Me to Get a Car?
Most times, when you need a car, you need it as soon as possible. Dealers and lenders understand this, and any reputable dealer will work with you to help you achieve your goals.
Auto Credit Express has helped millions get connected to the car dealers who were able to work with their unique financial situations and get them into the car, truck or SUV they needed to get back to business. We can do the same for you. Complete the fast, secure and obligation free online application today. You'll be back on the road before you know it.