Buying a Car With Bad Credit

April 12th, 2013 by

budget PlanningMost people hit a rough financial patch at least once in their lives. Unforeseen circumstances that outdo any financial planning or saving you may have done put you in a difficult situation can be hard to crawl out of. Even after you repair your finances, there always seems to be one specter you can’t shake off your tail: your credit score.

Tips for People With Bad Credit

Late payments to debtors will quickly drag down your credit score, making it hard for you to get approved for the type of loan your want. Here are a few tips to buying a car with a below average credit score:

  • Apply anyway: even if you’re pessimistic about your credit score, Middletown Honda encourages you to apply for financing anyway. We help a wide range of customers every day get the financing help they need to pay for their new vehicles. You can start the process right on our website.
  • Think realistically, but positively: when financing a vehicle with a low credit score, you’re probably not going to get the nice, low interest rate you wante. On the flip side, making regular payments on your vehicle will slowly boost your credit score. Boosting your score may also open up the door for refinancing your loan, lowering the total amount you owe.
  • Don’t bite off more than you can chew: piggy backing off of that last tip, it’s important to get a vehicle and plan you can actually afford. Making timely monthly payments on your car will only do you good if you’re paying your other bills on time. Putting off paying your electric bill or house payment on time to make your car payment, for example, will only continue to hurt your credit score.
  • There are alternatives: if you get denied for a loan through the normal avenues, there are other alternatives. A simple online search will help you to find creditors that are more willing to offer loans to customers with lower credit scores, albeit with higher interest rates.
  • Shop around: just because you get turned away at one dealership doesn’t mean that you’ll be turned away at another. If you haven’t checked out Middletown Honda yet, we encourage you to either drop by or look at our online new or used car inventories.