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Financial hardship visits almost every individual at some point in life. Even large car dealerships who are all-business understand this. A bad credit rating is not always indicative of an untrustworthy borrower. In fact, millions of Americans wake up everyday with a credit score that isn’t what they want it to be. Rules seem to change overnight, good actions seem to take forever to report, and a single missed payment seems to plummet a score overnight. It’s no surprise that many people must shop from bad credit car dealerships. Fortunately, bad credit car dealerships are actually good dealerships.
The more common problem for most Americans is a mixed bag of credit use. For example, you might have had excellent credit for a year or two and then ran into a medical crisis that required you to skip some of those credit payments and fall behind. Over time, you might have even given up on some accounts altogether. Do not feel alone. Some 13 million Americans have a credit score that is hovering below 500. Over 59 million have a score that is just “fair.” If you’re wondering how to buy a car with bad credit, you’ve got a lot of company.
Multiple actions affect credit score. The first action that affects credit score is actually how much you use credit in the first place. Many people have a “no credit unless it’s an emergency” plan in life, and this works out great until you actually need credit. If you haven’t borrowed a lot in your life, you may find yourself with a lower credit score and not even know why. It’s simple: you haven’t used credit enough to show that you are a good lender. For those of you who have used credit in life, many things could have dragged your score down over the years.
This factor is a ratio. How much credit you have compared to how much credit you’re using. If you have a credit limit of $5,000, and you’re using $750 of that credit limit, you have 15% credit usage. If your total credit in-use is $2,000, you’re using 40% of your credit. One of those is acceptable (15%) and the other is troublesome to lenders (40%). This is in the top 2 most important factors in credit, so if you’re using over 30% of your credit, you can really help your score by paying some of those pesky bills down.
On-Time Payments
If you make your payments on time, your score goes up little by little. If you miss a single payment, your score seems to drop overnight. It seems unfair, but that’s how the system appears to work.
Number of Applications
If you’ve taken “hard hits” to your credit score lately, those will stay on your record about 2 years, and they’ll impact your score for about a year. Don’t apply for credit just for fun. This can actually bring your score down.
If you simply need a vehicle right now, and you don’t have time for a primer on credit, then no credit bad credit car loans at Heyward Allen Toyota are the best available route you have for quickly financing an automobile. We recommend that all used borrowers really go into things with a level head. Know the price of the vehicle that you can actually afford and use our advanced search tools to locate the inventory that matches your current situation.
Other things will determine just how much you can finance this year. Dealerships like ours look at income, stability, credit score, and current debt. If you’re low on debt, great on income, don’t have a lot of bills, and just have a stagnant credit score that hasn’t moved because you haven’t used it, then there might be more available options to you. The culprit behind your “bad” or “no” credit score and debt-to-income ratio might also factor into things.
Our helpful lenders are here to draft solutions that work for all manner of borrowers, including those who’ve got more than their fair share of credit problems. To create your best chance to be approved, come in ready to benefit from our finance department staff and their years of experience.
1. Bring your income information to show off your income
2. Know your credit score and what you’re up against
3. Consider bringing in a co-signer who will be willing to sign onto a loan with you
4. Have a couple of vehicles picked out that pique your interest
5. Test drive and be really sure of your choice
6. Let our team work some magic for you
Many people with bad credit get turned down right off the bat before really researching dealerships. If you’re one of those people, don’t give up. You were just working with the wrong dealership. Now that you have our web address and number, things are looking up.
Heyward Allen Toyota has a helpful team of financial experts who would love to help you get your next auto loan. Don’t let bad credit frighten you away from buying a vehicle this year. We can get the deal done for you. Please write to us online or call us for more information.
