Want to get good interest rates and deals on an auto loan? It all comes down to one thing: your credit rating. When you have great credit, the sky is the limit. You can qualify for great offers like 0% financing, no money down offers, and low cost leases. But when you have damaged credit, these options can seem out of reach.
The good news is that opportunities for an affordable auto loan aren't out of the question. Even if you have to take on a financing agreement that doesn't have the best terms, you can use that to your advantage.
Repairing the Damage
Damaged credit can limit your options initially, but as long as you take steps towards rebuilding your credit, you can improve your chances for those great offers in the future.
- Make your payments on time, every time.
Your payment history makes up about 35% of your credit score. Keep up making your payments on time, and you will see improvements in your credit history.
- Pay off past due debts and bills.
The total amount of what you owe makes up 30% of your credit. If you have any unpaid debts, you should do everything possible to pay off those debts, and keep any current balances low. Between always making your scheduled payments and settling any delinquencies, you can dramatically increase your score.
- Check your credit reports for errors.
You can get a complimentary copy of each of your credit reports annually. Obtain and review these reports for any errors or fraudulent accounts. If you find anything that seems out of place, you can contact the reporting agencies and dispute the questionable information.
- Are you trying to recover from a Bankruptcy?
If you have been discharged from a Chapter 7 bankruptcy or are in the process of a Chapter 13 repayment plan, you may be able to work with a lender who understands your situation and be able to get you approved for a car loan.
Taking the Right Steps
Taking all of the necessary measures to take care of the things that are hurting your credit will only benefit you in the future. Once your credit is healthy enough, you may be able to refinance your current car loan with better terms including a lower interest rate.
If you are in need of auto financing and don't have time to wait until you have repaired the damage to your credit history, Auto Credit Express can help. We have a network of dealers who are experts in working with car buyers who need special financing.
Get started today by completing our fast and simple online application, and we will connect you with the dealer who can best work with your unique situation.