There is a misconception that there is no way to get approved for a car loan with imperfect credit. Of course, having great or even good credit does usually qualify buyers for a loan with better terms, yet there are options available for those with less than good credit. Many people wonder if they can qualify for an auto loan. Wolfchase Chrysler, Dodge, Jeep, and Ram offers second-chance financing, and we believe your car buying experience should be as stress-free as possible regardless of your credit history or budget. Our finance managers work diligently to locate the best lenders or loans to get you behind the wheel. For example, according to Experian data, Americans with credit scores under 670 have the same number of auto loans listed on their credit report on average as those with higher credit scores. To help you get approved for a car loan, we have listed below some helpful tips to follow before applying for your loan.
Check Your Credit Score and Make Improvements Where You Can Before Applying for a Loan
The FICO score for credit ranges from 300 (poor) to 800 (perfect). Once it falls below 670, the score is considered fair. Many people have scores that fall below 550 for one reason or another. Even though you may still qualify for a loan, you will pay a higher interest rate. Do yourself a favor and get a copy of your credit report before you apply for a car loan. Check to see if there is anything you can do to pay certain bills off quickly and ensure there are no mistakes in your report. To improve your credit score, make sure you pay your bills on time and reduce as much debt as possible.
Know How Much of a Car Loan You Can Afford
Before you decide on your car, you will need to know how much the monthly payments will be and how much you will spend on insurance and other essential car expenses. Keep in mind that a higher-priced vehicle could require more money down and will have higher monthly payments. Once you have chosen a car and know the price, our sales team can provide you with payment and financing options. Typical loan terms range from 36 to 72 months with a variety of interest rates. Reach out to insurance companies to find current rates on the vehicle you selected, so you know the cost of the insurance each month. Some sports cars or luxury SUVs can have higher insurance rates. If you get a loan you cannot afford, you could end up with worse credit, so it is essential that you ensure you can pay for the vehicle you choose. The amount of money you earn each month must be verified by your employer or the monthly benefits you receive. Your monthly income or combined monthly income will factor into securing the financing needed for your vehicle. Our financing department will guide you through the loan process if this is your first car purchase.
Have Your Down Payment Ready
Your down payment will go straight to paying off your car. The more money you put down on the vehicle, even with imperfect credit, the better your interest rate and monthly payments will be. This will help save you money over time, and larger down payments are more attractive to lenders and banks.
Where to Shop for a Vehicle if You Have Bad Credit
At Wolfchase, Chrysler, Dodge, Jeep, and Ram, our sales associates can help you find a lending situation that works best for you. They will work with different lenders to find and obtain a loan for your vehicle. Once you have applied, you can get various loan options allowing you to pick the best terms for your financial situation. Our sales team will put you at ease and ensure you understand your loan terms well. Additionally, we have a wide selection of new and used vehicles to choose from. Visit us today at 8170 US Highway 64 in Bartlett to see the many options we have for you.
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