Many people at all ages do not have a clear understanding of what credit is and how it can impact their lives for decades. In a nutshell, a credit history is a basic report that outlines an individuals financial investments, risks, and loans. Many items show up and remain on a credit history, including credit card account openings, mortgages, loans, and even other credit checks.
If you are looking for ways to improve your credit so that you can get a lower interest rate on a car loan and higher loan amount, there are some strategies that you can and should take. However, there are also some things that you should avoid. Here are the top 3 things people do that can hurt their credit:
1. Change jobs. Many people are forced to change jobs due to economic circumstances, such as a lay-off or company closure. However, if you are able to limit the amount of times you change jobs, you will have a better credit history. This, of course, may not be possible for all people.
Lenders like to know that their borrowers have some degree of stability in their jobs so that they can project that the borrower will be able to pay back the loan as long as the borrower continues to earn a steady income. However, if you have a history of frequently changing jobs, lenders may wonder how you will pay off a loan in the interim while you’re between jobs. Lenders may also have questions about your income stability and your lifestyle stability that could potentially cause them to wonder if you are a high risk loan candidate.
Of course, it is possible to get a loan if you change jobs frequently. Simply be prepared to explain your job changes to the lender. You’ll also want to tell the lender your plan for being able to pay off the loan even in the event of a future job change.
2. Open store credit cards. Store credit cards are great, right? They help you save money on purchases that you make at a store and they offer additional special benefits. However, each open credit account that you have, including store credit cards, can hurt your credit score and your credit history. A lender’s typical view on multiple open credit card accounts is: the more open accounts you have, the more chances you will fall into debt with those other lenders.
3. Move residencies. Moving alone will not hurt your credit. However, if you are trying to improve your credit, then staying in one place for a lengthy amount of time can help to show lenders that you have a degree of stability. They will also be more likely to trust that you will be easy to contact if they need to reach you after they extend the car loan.
Contact us today for more information about improving your credit and getting a car loan today. We have a huge inventory of used cars and trucks.
If you have bad credit and are worried about getting car financing, then worry no longer! We’re happy to tell you that we offer bad credit car financing for our customers regardless of their credit score and credit histories. After all, when it comes to buying a new or used car, you need to have a car that is safe and reliable – even if you have bad credit.
Getting bad credit car financing is quick and easy – especially when you work directly with one of our dealers. Here are a few things that you may need to know to get started!
We offer an easy-to-use online credit application that allows you to fill out the application from the comfort and convenience of your own home. After you submit your information, one of our credit counselors will contact you with more details and to discuss your credit situation.
When you have your consultation with one of our lenders, we’ll go over your credit application and discuss different items. We may want to talk more about why you have bad credit and what is different about your situation now. We may want to know more about your job and living situation as well. Feel free to tell us what’s on your mind – your consultation is confidential and the more candid you are, the better your financial situation will be.
Based on your credit application and our consultation with you, we’ll develop several different options for you that are uniquely designed to suit your financial situation. We care about helping you to afford your car now, but we are also interested in developing repayment that will help you to easily afford your car years from now as well. For example, we may suggest that you make a smaller monthly loan repayment over a longer period of time if you have a limited income. Alternatively, if you feel comfortable in your current financial situation, we may suggest paying more each month, but having the loan for a shorter amount of time.
Customers with bad credit will have a variety of very manageable options when they work with us. Contact us today, apply online, its fast, easy, and secure. Stop walking and start driving!
If you don’t have the on-hand cash to buy your next used car outright, or if you simply don’t prefer to do this, securing a loan is a great option. Car loans enable buyers to pay off their vehicles over a designated time frame a with monthly payments at a given interest rate. As with any loan, it’s vital to keep current with car loans in order to protect your credit and to avoid losing your vehicle. Here are some tips to ensuring you can pay off your loan.
Make Payment on Time
When you finalize your car loan, a specific date will be set when your payment will be due. It’s critical to never miss this deadline. Missed payments will not only result in late fees but can cause more serious problems like damaged credit or even repossession of the car. Get in the habit of paying on time no matter what. A good piece of advice is to set up automatic withdrawals from your bank account.
Put Some Money Down
At the time of the purchase, you may be required to put a certain amount of money down for the car. If possible, make a larger-than-necessary down payment. This will lower the principal and the monthly payment, thus making it more manageable.
Call For Help When You’re in Trouble
While you should never intentionally miss your payment, life happens and circumstances make it difficult or impossible to keep up with your loan. Perhaps medical bills pile up, or perhaps you have a job loss or personal tragedy. There are legitimate reasons why paying on time will not be easy. Your lender recognizes this as well. However, if this happens to you, don’t ignore the late notices or neglect the loan. Talk to your lender and explain your situation. Your lender will work out a plan to help you so that you don’t get behind and default.
Staying current on your loan is vital. Practice this tips and have the peace of mind of financial security.
Purchasing a vehicle isn’t something to take lightly or just do on a whim. This should take careful consideration. After all, your car will serve many purposes, hopefully or a number of years to come. Buying a used car doesn’t have to cause panic or anxiety, however. With car loans, it can be easier than you may think to own a vehicle, whether it’s your only car or if you plan on it being an addition to what you already have. Here are some benefits of obtaining a loan for your next used car.
Won’t Drain Your Bank
Securing a car loan can often be done with very little up front. Sometimes, you can finding lending that won’t require anything down. While you’ll have monthly payments for the life of the loan, you won’t be out a large sum of money at one time. This means you’ll keep your hard-earned cash for yourself to spend on your needs, including upcoming car maintenance and repairs. Purchasing the vehicle outright will take away from what you currently have in your account.
Easier Than You May Think
One thing that keeps people from using car loans for their next automobile purchase is the worry that the lending process will take too much time or will involve more paperwork than is wanted. But actually, many dealerships can handle the lending aspect of the transaction, making the process smoother and painless. You can obtain a loan for your car quite easily without having to wait for the keys.
Helps You Get a Car You might Not Otherwise Buy
The price tag of even a used car can look out of reach or daunting. You might not have that kind of cash on hand, but with a loan, you can map out a plan to afford the monthly payments and ultimately own the car outright.
For your next purchase, consider a car loan. You can drive off in a reliable car sooner than you thought was possible.
If it is your first time purchasing a car, you may feel a mixture of emotions, such as excitement and nervousness. You may feel excited about finally getting something of your own instead of relying on other people to drive you to different places, but nervous because you might not know how you will afford to get a vehicle of your own. Bad credit car loans make it easier for just about anyone to get a vehicle if and when they need one. We can help you complete the application for a car loan at our dealership.
Applying and Making Important Decisions
The first step to the buying process involves completing the application for one of these loans. There are many details you may need to provide about yourself before you are approved for a specific amount of money. If you do get approved, we can tell you how much is available for you to spend and guide you in the right direction of the various vehicles that are available within that specific price range. We have quite the selection available. There are many makes and models available at our dealership. When it comes down to the one that you choose to get, it is mainly a matter of preference.
Ride Away in Style and Stress-Free
Even though your credit is not great, you may still be able to get a great car that looks stunning both inside and out. The option of using a loan to pay for the car means you can easily ride away in style without the stress of spending all your money at once. After getting the loan and selecting the right vehicle, you can agree to make payments of a certain amount for several months until the total cost of the car is officially paid off. It is a stress-free process that allows you to get a car without a struggle.
If you are shopping for your very first vehicle, come take a look at the options we have. Not only do we have an amazing selection of vehicles, but we also offer loans for those with bad credit.